President Donald Trump has changed his stance on TikTok, a company owned by Chinese start-up ByteDance. On 31st July, President Trump said he would be banning TikTok due to security issues, which made Microsoft that was in talks to buy TikTok halt the acquisition negotiations.
Later on Monday, President Trump said he was open to Microsoft or some other U.S. company working out a deal to buy TikTok, but they have to give a portion of the sale price to the government. He also indicated if the deal is not reached by September 15th, he would ban the video-sharing app.
After Microsoft CEO Satya Nadella spoke to President Donald Trump about buying TikTok, Microsoft stated in its corporate blog that it will continue its discussions to purchase the app operation in the United States, Canada, New Zealand, and Australia.
Microsoft press release stated, “Microsoft 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.” Microsoft and ByteDance have provided notification to the Committee on Foreign Investment in the United States (CFIUS), about Microsoft wanting to purchase and operate the TikTok services in the United States, Canada, Australia, and New Zealand.
Post-acquisition, the app platform will provide the same experience to its users as of earlier, in addition to providing world-class security, privacy, and digital safety protections. Microsoft has also ensured that all private data of TikTok’s American users will remain in the United States and any data currently stored or backed-up outside the United States, will be transferred and deleted from servers outside the country.
The acquisition of TikTok, the fastest growing social media platform will set Microsoft as a real competitor to YouTube and Facebook.