- President Donald Trump is threatening to shut down TikTok
- Microsoft announced they are attempting to purchase the social media app
- Bookmakers have set odds on how much it will sell for or if it'll be banned by October
The lyrical philosopher Slick Rick once uttered the phrase “…tick tock and you don’t stop” and forever changed the rap world. Some 25 years later, President Donald Trump is threatening to make a liar of Mr. Rick. Late last week, President Trump threatened to ban, and stop, the uber-popular social media app TikTok in the United States. His administration believes the China-owned app poses a national security risk and theories swirl that data harvested by the app is being forwarded on to the Chinese government. Less than 48-hours after the initial threat, Microsoft released a statement indicating they are attempting to purchase TikTok by September 15. Wasting no time on the pop culture phenomenon, bookmakers at Bovada cooked up odds that TikTok will be sold to Microsoft, how much it will sell for or will the social media app be banned by President Trump before October 1, 2020.
|How much will TikTok sell for?|
|More than 50 Billion USD (-110)|
|Less than 50 Billion USD (-130)|
ByteDance Ltd. must sell 100% of TikTok (not just TikTok US Inc.) to a non-Chinese based corporation for wagers to have action. Sale must occur before Jan.1, 2021 for wagers to have action. Bookmanager’s decision is final.
When dealing in dollars and cents, context is important. In case you didn’t know, TikTok is a digital monster company with 800-million users. That’s million with a hard “M” and don’t you forget it. By comparison, Instagram was bought by Facebook for $1-billion back in 2012, but had fewer than 100 million users at the time of sale. So, yeah Microsoft or a company-to-be-named-later will have to shell out a ton of cold hard cash in order to acquire the platform’s rights. With the way the market is right now and knowing that MSFT is sitting on a mountain of cash, both factors could be used to expand the company’s market share and place pressure on rivals like Apple.
|Will Microsoft buy TikTok?|
Sale must occur and/or be announced by the parties involved before October 1, 2020 for wagers to have action. Bookmanager’s decision is final.
Because Microsoft officially announced its bid to purchase TikTok on a Sunday, investors were eager to learn how the news would impact stock prices come Monday. As you may have guessed, the official statement boosted the per-share price 5.62% or $11.53 and settled at $216.54 at Monday’s market close. However, during a press conference last night President Trump said if Microsoft does close a deal and purchases TikTok, the company should owe the U.S. Treasury a “key fee” for “arranging” the business deal. Who knows if this will come to fruition, but it makes one wonder that if the Trump administration continues to poke their nose in MSFT’s acquisition negotiations, at what point do they walk away from the table?
Will TikTok be Banned in the US by October 1, 2020?
President Trump and/or his administration must publicly announce or issue a press release confirming a ban on TikTok no later than October 1, 2020 for “Yes” to be graded as a win.
It was just a few years ago that President Trump claimed that “trade wars are good and easy to win” when justifying the economic standoff between the U.S. and China. Though he agreed to a mild Phase 1 trade deal eventually, the coronavirus pandemic strained Trump and Chinese president Xi Jinping’s relationship to the point where a quasi-cold war currently exists. The administration just forced China to close a Houston-based embassy and now there’s this threat to put the kibosh on TikTok, perhaps as punishment for the pandemic spiraling out of control around America. Trump will attempt to get his way via control. Whether that’s via a forced sale to Microsoft or another company or an executive order banning the social media app based on national security concerns.
Ready to place your bets? Head on over to Bovada to wager on TikTok’s future!