Microsoft said in a blog post, it would continue discussions on exploring the purchase of TikTok in the United States. This was following a conversation between its CEO Satya Nadella and President Trump.
It’s the first time MS has confirmed reports of talks regarding the acquisition of the controversial video sharing platform.
The blog post says MS fully appreciates the importance of addressing the President’s concerns. The company is set to acquire TikTok subject to a complete security review and provision of proper economic benefits to the U.S. This includes the United States Treasury.
Moreover, MS expects to move quickly to pursue discussions with TikTok’s parent company, ByteDance. This will be in a matter of weeks, at the latest completing these discussions by September 15th, 2020.
The blog also says that the two companies have provided notice of their intent to explore a preliminary proposal. That proposal would involve a purchase of the TikTok service in the United States, Canada, Australia, and New Zealand. It would result in Microsoft owning and operating TikTok in these markets.
It’s not clear how MS would sever those countries from other areas. These are countries where TikTok operates, like in Europe and Africa.
MS also did not commit to undertaking the purchase entirely on its own. It said that the company might invite other American investors to participate on a minority basis in this purchase.
MS Ensures Data Deleted from Servers after Transfer
President Trump had warned to ban TikTok in the US on Friday. He indicated that he was ready to sign a document to order the TikTok ban as early as Saturday.
And it was going to be either via executive order or emergency economic powers.
The U.S. Secretary of State Mike Pompeo has mentioned the possibility of a ban as early as July 7th. He said it was something they were looking at.
TikTok is a subsidiary of Beijing-based ByteDance. News have been reporting that critics have called out its privacy practices and potential ties to the Chinese government.
Pompeo also compared TikTok to Huawei and ZTE. These two Chinese companies have also been designated as threats to US national security.
The blog describes MS discussions with Tik Tok as preliminary, but it addresses privacy concerns. They ensure that the United States receives all American TikTok users’ private data.
This would be to the full extent of any such data currently stored or backed-up outside the United States, the post said. Microsoft would ensure that this data is deleted from servers outside the country after it is transferred, the post continued.
MS: A Guide to the World’s Most Downloaded App Tik Tok
The TikTok app lets users create and share short videos with music and camera effects.
Beijing-based ByteDance owns TikTok, founded by entrepreneur Zhang Yiming in 2012.
The $75 billion conglomerate acquired the Musical.ly app in 2017 and merged it with TikTok. It brought millions of new users.
With nearly 800 million downloads across the globe, it is the world’s most downloaded iPhone app. This was according to data from mobile research firm Sensor Tower.
Facebook has taken notice of TikTok’s rising popularity. It launched a competitor app called Lasso in November last year.
COMMENTS