Business

Microsoft in talks on TikTok purchase, deal likely to be finalized by September 15th

Microsoft in talks on TikTok purchase, deal likely to be finalized by September 15th - Appy Pie

Microsoft has posted a statement that says it will continue discussions on a potential TikTok purchase in the US. As a part of the statement, the company said that it may even invite various other American investors to participate in the deal on a minority basis.

This is a result of conversations between Microsoft CEO Satya Nadella and President Trump.  The statement issued by Microsoft says, “Post conversation between Microsoft CEO Satya Nadella and President Donald J. Trump, the company is prepared to continue discussions to explore a purchase of TikTok in the United States.”

However, Microsoft cleared that their discussions on acquisition of TikTok from ByteDance would only be completed likely by September 15th, 2020 and that is only if discussion with the President and the US government will be ongoing.

Microsoft fully agrees to the important aspects like addressing the President’s concerns. It will acquire TikTok subject only after security review and economic benefits to the United States. Microsoft has assured that the operating model for the service would be built to ensure transparency to users as well as appropriate security oversight by governments in these countries.

The purchase would lead to Microsoft taking up TikTok operations in the US, Canada, Australia, and New Zealand markets. Microsoft will position itself as a curator of TikTok if it removes the data issue.

This new structure will help TikTok users have the same features with world-class security, privacy, and digital safety protections. The company will ensure transparency to users as well as appropriate security oversight by governments in the countries.

The company also said, “Microsoft would ensure that all private data of TikTok’s US users is transferred to and remains in the United States. To the extent that any such data is currently stored or backed-up outside the United States, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred.”

The discussions with ByteDance will build upon a notification made by Microsoft and ByteDance to the Committee on Foreign Investment in the United States. The two companies have provided notice of their intent to explore a preliminary proposal that would result in Microsoft owning and operating TikTok in the markets mentioned above.

However, Microsoft made it clear to the media that the discussions are still at a preliminary stage and the company does not intend to provide any further information unless there is any outcome to their discussions.