TikTok reportedly approaches Netflix in plan for streaming giant to acquire its US operations
- TikTok is said to have approached Netflix to “gauge its interest in a deal” to acquire its US operations
- Netflix is just one of several tech firms that have been linked to TikTok acquisition talks in recent months
The lofty price tag for TikTok's US operations – estimated to be worth between US$10 billion and US$50 billion – means few American tech companies have the funds to afford the buy the viral app.
As for Netflix, CNBC's Alex Sherman argues TikTok would bring an advertising-revenue-based platform into its folds, allowing the streaming service to continue offering ad-free entertainment.
Although Netflix CEO Reed Hastings famously said the company's biggest competition in 2017 was sleep, he called out TikTok this year as a competitor in “internet entertainment”.
Trump gives Microsoft 45 days to buy TikTok from China’s Bytedance
It was recently revealed Microsoft and ByteDance signed a “nonbinding letter of intent” at the end of July, a significant step in the acquisition process indicating that talks between the two companies were advanced.
Yet it is unclear where the negotiations currently stand, as TikTok challenges the Trump administration's attempts to ban the app in the US. Since late July, Trump has issued two separate executive orders aimed at TikTok, and has set a mid-November deadline for ByteDance to sell of the app's US operations.
TikTok is arguing the US government breached its right to “due process” by failing to notify the company ahead of the executive order, as well as accusing the administration of lacking evidence to support its claims the Chinese government accesses the data of TikTok's American users.