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Trump says Microsoft should pay 'key money' to Treasury for facilitating TikTok deal - CNBC

Trump says Microsoft should pay 'key money' to Treasury for facilitating TikTok deal - CNBC

Trump says Microsoft should pay 'key money' to Treasury for facilitating TikTok deal - CNBC
Aug 03, 2020 1 min, 9 secs

President Donald Trump said Monday that it could be easier if Microsoft were to buy Chinese-owned TikTok in its entirety, rather than a small part of the social video app, because the name would be split across two companies, and suggested the company should pay the U.S.

"I think buying 30% is complicated, and I suggested that he can go ahead, he can try," Trump told reporters in the Cabinet Room at the White House on Monday.

The comments come a day after Microsoft confirmed in a statement that it has looked at buying TikTok in the U.S., Canada, Australia and New Zealand.

Trump said Monday that part of the amount paid to buy TikTok would have to come to the U.S.

Investors of the privately owned ByteDance, the Chinese company that owns TikTok, valued TikTok at $50 billion, Reuters reported last week.

"We believe from a management and board perspective this is a unique deal of a decade opportunity with a price tag that could easily be consummated," Wedbush analysts led by Dan Ives, who has the equivalent of a buy rating on Microsoft stock, wrote in a note distributed to clients on Monday. Microsoft had $136.53 billion cash, equivalents and short-term investments as of June 30, according to the company's most recent quarterly earnings report.

WATCH: How Microsoft could benefit from buying TikTok.

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