According to the official statement, Microsoft will be having a discussion with ByteDance regarding the acquisition of its US operations. ByteDance is a technology company that owns many content platforms including TikTok.
Microsoft in the statement also mentioned that the discussions will be completed before the 15th of September, 2020. On Friday, the president had said that he would not allow Microsoft to buy operations of TikTok US. However, it now appears that President Trump has given his approval by changing his stance.
The CEO of ByteDance, however, is a bit reluctant on giving away all the operations to another company. He said that the company is in discussion with another technology company to finalize a deal about TikTok in the US.
CEO Zhang Yiming also stated that he is still unsure of a solution and could not give any exact details.
In the past few months, the US government has raised concerns that China might be gaining access to US user’s data through TikTok. This concern occurred due to the rising diplomatic tensions between the two countries.
In response, TikTok called itself an independent company with no influence of the Chinese Government over them. It also said that the Chinese Government has never demanded any user data. As TikTok has more than a hundred million users in the US, the application cannot afford to be banned.
Microsoft understood the president’s concerns and assured that the company (when it takes over TikTok) will ensure the protection of data and eliminate all the possible security risks.
Microsoft has also pledged to buy TikTok in Canada, Australia, and New Zealand as well. It also hinted towards inviting other American investors on a minority basis.