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Microsoft says Satya Nadella, CEO, spoke to Trump about buying TikTok
In a blog post Sunday, Microsoft said it was "prepared to start negotiating the purchase of TikTok in the United States," following a conversation between CEO Satya Nadella and President Trump. It's the first time the company has reported that it's been in negotiations to acquire a video sharing site.
Microsoft fully appreciates the importance of addressing the concerns of the President. It is committed to acquiring TikTok subject to a complete security review and to providing proper economic benefits to the United States, including the United States Treasury, says the blog post.
It adds that the company expects to move quickly to engage in discussions with ByteDance, the parent company of TikTok, in a matter of weeks, and in any event to conclude these discussions by 15 September 2020 at the latest.
The blog post also states that the two companies have informed their intention to discuss a tentative plan that would include the acquisition of the TikTok service in the United States , Canada , Australia and New Zealand and would result in the ownership and operation of TikTok by Microsoft in those markets.
It's not clear how Microsoft would separate those countries from other areas where TikTok operates, such as Europe and Africa. Microsoft also failed to undertake the purchase entirely on its own, saying that the company may invite other American investors to participate on a minority basis in this purchase.
President Trump threatened to ban TikTok in the US on Friday. Trump told reporters that he was ready to sign the TikTok ban document as early as Saturday, either through an executive order or through emergency economic powers.
Secretary of State Mike Pompeo discussed the prospect of a ban as early as 7 July, saying it was "something we're looking at."
TikTok is a subsidiary of Beijing-based ByteDance, and critics have called for its privacy policies and alleged links with the Chinese government. Pompeo also compared TikTok to Huawei and ZTE, two Chinese companies that have been identified as a threat to US national security.
The blog post describes the discussions as "preliminary," but addresses privacy concerns, saying that the company would ensure that all private data of TikTok 's American users is transferred to and remains in the United States.
To the degree that any such data is actually stored or backed up in the United States, the article continues, Microsoft must ensure that the data is removed from servers in the United States after it has been moved.
