Microsoft is ready to buy the Chinese app TikTok despite President Trump’s warning. The company to continue discussions on potential TikTok purchase in the United States.
TikTok Purchase by Microsoft
The US company Microsoft has announced that talks on buying the Chinese app TikTok will continue, despite the warning from President Trump.
The famous TikTok social media app has been banned in the US, after which Microsoft, a well-known company showed interest in buying it.
US President Donald Trump declared a ban on TikTok speaking in the United States two days ago because of security issues.
Trump had voiced concerns that the application could be used by Chinese intelligence and might cause a threat to US citizen’s data collection and national security.
However, in a statement, Microsoft said the company’s CEO had spoken to President Donald Trump and the two decided that negotiations will proceed to buy the Chinese TikTok application. In this way, the national security issues of President Trump should be discussed.
According to the Microsoft Corporate Blogs:
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.
President Trump previously threatened to ban TikTok, accusing China of spying by TikTok but the company denied the allegations.
Microsoft confirmed that CEO Satya Nadella is already in negotiations with the company Byte Dance and the US President.
Byte Dance, the company that owns the app, has negotiated to resolve the demands of the US government, and an alternative option has arisen that the app could be purchased by Microsoft.
According to the company, Microsoft is dedicated to comprehensive security analysis of TikTok’s acquisition, which aims to provide the United States with sufficient economic benefits.
Negotiations with Byte Dance will be concluded by September 15, 2020, and Microsoft will buy operations of the app in some markets, including the United States, if successful.
Microsoft will be responsible for operating the service in the US, Canada, Australia, and New Zealand, while Byte Dance will manage the activities of the app in other countries.
Microsoft would ensure that American citizen’s private data is transmitted to the U.S. and a compliance assessment will be provided to local agencies.
TikTok’s US branch is valued at between $15 billion and $30 billion.
Chinese Apps in India
It must be noted that many famous Chinese apps like VChat, including TikTok, were banned in India in the month of June as well.
By stating security threats and securing consumer privacy, the Indian government justified the ban on such apps.