Short video-sharing app TikTok is reportedly in talks to sell its US business to Microsoft. The talks are in an advanced stage, according to a report in The Wall Street Journal on Friday which cited people familiar with the discussions.
Completion of such a transaction could make Microsoft a big player in the social media space as TikTok is hugely popular among the youth.
But the app, owned by Chinese unicorn ByteDance, is facing a lot of scrutiny in the US, especially after getting hit with a ban in India in June.
According to a report in The Hill, US President Donald Trump on Friday unveiled his plans to ban TikTok in the US using emergency economic powers or executive order as early as Saturday. The app is already banned in India.
The announcement made to reporters aboard Air Force One came hours after news broke about a possible transaction between Microsoft and ByteDance.
The popularity of TikTok has heated up the social media war in the US with rivals like Instagram and YouTube testing services that offer TikTok-like functionalities.
Earlier this week, TikTok unveiled a plan to offer creators $2 billion globally in the next three years.
The TikTok move came after the media said Instagram is reportedly offering financial incentives to some popular TikTok creators in a bid to make them use Reels, a video-music remix feature that the Facebook-owned platform plans to unveil this month in the US.