Microsoft nears big bet on TikTok after risky LinkedIn deal shows promise

OAKLAND, Calif. (Reuters) – Microsoft Corp’s potential acquisition of short-video app TikTok carries myriad risks, thrusting it into the politically fraught social media business and Sino-U.S. conflict amid increased scrutiny of big-tech companies.

But the deal could help Microsoft build on its $27 billion purchase of LinkedIn to become a bigger player in internet advertising now dominated by Facebook Inc and Alphabet Inc’s Google.

Microsoft on Sunday said it aims to complete a deal by Sept. 15 for TikTok’s U.S., Canada, Australia and New Zealand operations. It is likely to have an edge in pricing negotiations as the U.S. is effectively forcing TikTok’s Chinese parent, ByteDance, to sell by threatening to ban the app as a security risk.