Why Jim Cramer's Not Sure If Microsoft Is the Right Buyer for TikTok
Microsoft and TikTok sitting in a tree?
Microsoft said that it will continue to negotiate with ByteDance to explore a purchase of its popular social media platform TikTok in the U.S in a blog post on Sunday.
Microsoft confirmed that it will wrap up negotiations with the company no later than September 15 and "during this process, Microsoft looks forward to continuing dialogue with the United States Government, including the President."
The company said that it decided to continue negotiations following a conversation between Microsoft CEO Satya Nadella and President Donald Trump, who tweeted last week that he would seek to ban the app in the U.S.
Microsoft is interested in purchasing TikTok's operations in the U.S., Canada, Australia and New Zealand, and the company said it may invite other American investors to join as minority investors.
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The Trump administration has upped its pressure on the Chinese government in recent months and threatened to ban TikTok just last week.
"Among other measures, Microsoft would ensure that all private data of TikTok’s American users is transferred to and remains in the United States. To the extent that any such data is currently stored or backed-up outside the United States, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred," Microsoft said in its statement.
However, Jim Cramer's not so sure that Microsoft and TikTok are a match made in heaven. He thinks that a company--such as Verzion--might be a better fit for the app that's become ever more popular with the Gen Z crowd.
Conversely, he told TheStreet that he does think a Microsoft-TikTok deal would be approved.
Do you agree with Cramer? Comment below.