Trump gives Microsoft 45 days to negotiate the acquisition of TikTok and to secure a deal within the given time. Microsoft confirmed that it is in discussion with ByteDance and expects to conclude the negotiations by September 15. This move is coming after Donald Trump had dismissed the idea of Microsoft taking over the US operations of Tiktok.
Republican Senator Lindsey Graham tweeted in response to Trump’s new decision to allow the sale if Tiktok without any ban is “A win-win in the making.” He added, “Thank you, President Trump, for protecting American consumers from the Chinese Communist Party and bringing back jobs to the US.”
Trump told reporters on Friday that he planned to Ban Tiktok over national-security concerns raised. The change in his decision came following the pressure from members of the Republican party and his advisers. Banning Tiktok would likely result in a wave of legal challenges and alienate many young Tiktok users.
Microsoft and The Tiktok Deal
In a statement on Sunday, Microsoft said: “Following a conversation between Microsoft CEO Satya Nadella and President Donald Trump, Microsoft is prepared to continue discussions to explore a purchase pf Tiktok in the United States.” “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.”
Redmond based Microsoft said that it would move all data servers covering all US-based users to America, thus alleviating US policymaker’s concern that the Chinese government officials might use the app hack into the lives of American citizens. Microsoft will also ensure that any users private data backed up or stored outside the US is deleted after it is transferred into US servers.
Taking of the US operations of Tiktok, which has over 100 million US users, Microsoft is offered an opportunity to become a major competitor to Facebook Inc and Snap Inc.