TikTok has been in the spotlight for some time now but President Trump communicated worries about the video-sharing app gathering information on American residents and the danger that poses to national security.
The app parent company ByteDance has so far been ineffective in working out an arrangement with the US government so an elective arrangement is proposed which is the acquisition by Microsoft. A rumour filtered in recently that Microsoft’s CEO was in talks with Trump and ByteDance over an acquisition deal for the social media app.
The software giant has formally confirmed that the CEO Satya Nadella has been in talks with the US President and ByteDance. According to an official statement by Microsoft, the company “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 discussions with ByteDance will be finished by September 15 of this current year. In the event that Microsoft strikes an arrangement, it will procure TikTok tasks in select markets and may welcome different US financial specialists to take on a minority share. Microsoft will only control TikTok’s operations in the United States, Canada, Australia and New Zealand. ByteDance will retain the operations in other markets.
TikTok’s US arm alone is estimated to be in the range of $15 and $30 billion. Microsoft will guarantee that the private information of American clients is moved to the US.
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