Technology giant Microsoft says it is in talks with Chinese tech giant ByteDance to acquire its video sharing social app, TikTok, in the US.
The company said it in a statement that it will keep working with the U.S. government on a deal and that it intends to conclude talks by September 15.
TikTok, a short-form mobile videos sharing app, has over 80 million users in the US and about 800 million users worldwide.
The statement comes two days after media outlets reported that Microsoft was interested in acquiring the app, which is owned by Chinese company ByteDance. Soon after the reports emerged, President Trump said that he opposed the idea of Microsoft buying TikTok and that he would move to ban the app in the U.S through executive authority citing it as a security threat.
“We’re banning them from the United States,” Trump said.
Reacting to Trump’s threats to shutdown the app in the US, a company representative for ByteDance told ABC News the app was a hub for entertainment for US users.
“These are the facts: 100 million Americans come to TikTok for entertainment and connection, especially during the pandemic. We’ve hired nearly 1,000 people to our U.S. team this year alone, and are proud to be hiring another 10,000 employees into great paying jobs across the US. Our $1 billion creator fund supports U.S. creators who are building livelihoods from our platform. TikTok U.S. user data is stored in the U.S., with strict controls on employee access. TikTok’s biggest investors come from the U.S. We are committed to protecting our users’ privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform.” The company rep said.
The two companies have looked at Microsoft buying TikTok in the U.S. Canada, Australia and New Zealand, and Microsoft might offer other American investors to get involved in the acquisition, Microsoft said.
“This new structure would build on the experience TikTok users currently love, while adding world-class security, privacy, and digital safety protections,” Microsoft 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.”
