Today, Microsoft Corp, in a statement, said that it will continue to discuss a potential deal to acquire the operations of Chinese-owned short-video app TikTok in the U.S. This deal holds the potential to re-shape the social media industry.
On Sunday, after the reversed course on plans to ban Tiktok, the tech giant had formally declared its interest. The statement says “Following a conversation between Microsoft CEO Satya Nadella and President Donald J. Trump, Microsoft is prepared to continue discussions to explore a purchase of TikTok in the United States.” Adding, “Microsoft fully appreciates the importance of addressing the President’s concerns. It 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.”
Also Read: TikTok Will Be Soon Exiting Hong Kong Market
The acquisition of TikTok’s operations can offer Microsoft an opportunity to become a major competitor to social media giants with 100 million users base. Till now Microsoft owns LinkedIn, a professional social media network is also seeking to buy TikTok’s operations in Australia, Canadia, and New Zealand. Also, one most crucial region the country is targeting is India. The country can provide a great future opportunity for both companies with this deal.
Microsoft says that their discussions about the acquisition from ByteDance will complete no later than September 15th, 2020. The company has also managed to assure the legislature about the data and privacy protections by saying “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 company has added “Among other measures, Microsoft would ensure that all private data of TikTok’s American users are 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.”
On Friday, Trump was all set to ban TikTok amid security and privacy concerns because of the personal data it handles. However, he has only agreed to allow Microsoft to negotiate and secure a deal in 45 days.