Following the Indian government banned TikTok, the U.S. government was also considering doing the same due to TikTok’s parent company, ByteDance, having close ties with the Chinese government. In a surprise move, Microsoft has now confirmed its interest to purchase TikTok in the United States and a few other markets.
The announcement comes after a conversation between Microsoft CEO Satya Nadella and President Donald Trump. The Redmond company says that it is ready to acquire TikTok after a “complete security review” and “providing proper economic benefits” to the US. Microsoft says that it will hold talks with TikTok’s parent company ByteDance for the acquisition and move to complete the entire process by September 15th, 2020.
The discussions with ByteDance will build upon a notification made by Microsoft and ByteDance to the Committee on Foreign Investment in the United States (CFIUS). The two companies have provided notice of their intent to explore a preliminary proposal that would involve a purchase of the TikTok service in the United States, Canada, Australia, and New Zealand and would result in Microsoft owning and operating TikTok in these markets. Microsoft may invite other American investors to participate on a minority basis in this purchase.
The Redmond company says it will build on the experience offered by TikTok by improving its security measures, privacy, and more. Microsoft will also work on moving the data of TikTok users in the U.S. to American servers.
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Microsoft’s proposal to acquire TikTok in certain markets is definitely an interesting one. The company does not have any major social networking sites under its portfolio and by acquiring TikTok, it could easily gain access to millions of users in major markets worldwide. What do you think about Microsoft’s intention to acquire TikTok? Drop a comment and let us know!