Confirming the rumours of Microsoft buying Chinese video-sharing platform TikTok’s American business, the tech major has announced that the talks between the two companies will continue after its CEO Satya Nadella and President Donald Trump had a conversation.
The statement from Microsoft comes days after Trump said that he could use his powers to ban the ByteDance-owned app in the US over national security issues.
As per reports, the deal between the two companies was about to be closed but was put in doubt after Trump’s warning.
Microsoft said that it “will move quickly to pursue discussions with TikTok’s parent company, ByteDance, in a matter of weeks, and in any event completing these discussions no later than September 15, 2020”.
During this process, Microsoft looks forward to continuing dialogue with the US government, including with the President.
Last week, Trump had threatened to ban TikTok after concerns were raised that it could be a national security risk.
“As far as TikTok is concerned, we’re banning them from the US,” Trump told reporters on Friday.
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).
Microsoft added that “in any event” it would finish talking with ByteDance no later than September 15.
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 US, Canada, Australia, and New Zealand and would result in Microsoft owning and operating TikTok in these markets.
Microsoft said it may invite other American investors to participate on a minority basis in this purchase.
“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,” it said.
TikTok has repeatedly denied accusations that it provides user data to the Chinese government. With an aim to satisfy the U.S. authorities the company hired a U.S.-based chief executive officer. It is further considering to make other organisational changes.
This is not the first time when Microsoft has dabbed in social-media investments. But the company has failed to develop a lucrative service of its own. In 2016, it acquired LinkedIn for $26.2 billion.