Microsoft had on Sunday confirmed it is holding talks with Chinese-based ByteDance to buy the U.S. operations of its TikTok unit. Microsoft said that its CEO, Satya Nadella, has discussed the situation with President Donald Trump, who has previously threatened to ban the service in the U.S. over security concerns.
“Microsoft fully appreciates the importance of addressing the president’s concerns,” the company said in a blog post. “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.”
The company claimed it intends to complete the talk with ByteDance not later than September 15, 2020 and added that it “looks forward to continuing dialogue with the United States Government, including with the president.”
Microsoft (ticker: MSFT) and ByteDance have notified the Committee on Foreign Investment in the U.S. (Cfius) of a proposal for Microsoft to buy the TikTok service in the U.S., Canada, Australia, and New Zealand. Microsoft said it may invite other American investors to take a minority stake.
“This new structure would build on the experience TikTok users currently love, while adding world-class security, privacy, and digital safety protections,” the company said. “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.”
Below is the tweet to confirm the acquisition plan…
This move is also believed to ensure absolute security of American users data and it would mean data all data are residual in the United States.