We heard murmurings last week, however now Microsoft has certainly confirmed that it’s in talks to purchase TikTok’s US business. The information comes shortly after President Donald Trump threatened to ban the short video service, citing national security concerns.
“Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury,” the Redmond firm stated in a blog post.
In different words, it definitely seems like Microsoft buying TikTok’s US unit is a foregone conclusion at this point. However, the firm insists that the talks are early and that there’s no guarantee of a deal. The tech colossus nonetheless confirmed that it aims to complete discussions to accumulate the service’s US operations “no later than September 15, 2020.”
Microsoft additionally noted that the discussions come on the back of a preliminary proposal to purchase TikTok in the US, Canada, Australia, and New Zealand, with Microsoft operating the service in these markets. This means that the TikTok US talks will kinda part of a wider deal involving the operations of more nations. Although it’s important to assume that the service may nonetheless be operated by present owner ByteDance in most markets not mentioned right here.
The Redmond firm adds in its blog post that TikTok would achieve “world-class security, privacy, and digital safety protections” as a part of the deal. It additionally claims that TikTok could be more transparent for customers, whereas also providing “appropriate security oversight by governments” in these proposed markets.
One of those measures consists of transferring knowledge belonging to TikTok’s US customers to the US itself, then deleting the info from servers outside the nation.
A successful acquisition means Microsoft would have two major social platforms under its umbrella, with the firm buying LinkedIn for $26 billion back in 2016. A similar deal for TikTok may also theoretically be a possibility in India, because the app has been banned there on account of Sino-Indian tensions. However, this resolution hasn’t been mooted out there just yet.
The US firm initially set its sights on TikTok’s business in Australia, Canada, New Zealand, and the US, however now it reportedly needs a lot higher stake. As per the report, Microsoft is now concerned about striking a deal that would come with TikTok’s business in all nations wherein it operates, also the likes of India.
Talks are ongoing, however, the deadline for the deal is nearing. President Donald Trump late on Thursday (August 6) signed an order banning TikTok from the US until a deal is struck before September 20.