Microsoft confirms its plan to buy TikTok amid issues with the app. The tech giant says it held talks with ByteDance.
Microsoft affirmed that its talks with the China-based company were about acquiring its social app TikTok in the US. According to Microsoft, it will continue working with the US government on a deal and plans to finalize the talks by September 15.
With the acquisition deal, Microsoft could address a recent controversy in Washington and establish its position in consumer technology at the same time.
US Secretary of State Mike Pompeo has always considered TikTok as a security threat. He also said the company is sharing users’ information with the Chinese government. Fox’s Laura Ingraham asked him if he would recommend people to download the app. “Only if you want your private information in the hands of the Chinese Communist Party,” he said.
Microsoft's statement comes two days after media outlets revealed the company's interest in buying TikTok, which is owned by ByteDance.
“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.”
Trump's reaction
Trump previously said he will ban TikTok in the US. “As far as TikTok is concerned we’re banning them from the United States,” the president said, labeling the action as “severance.”
He did not mention whether he will implement it through an executive order, or another process, such as a designation, the NBC News states.
“Well, I have that authority. I can do it with an executive order or that,” Trump said.
However, this Sunday, unnamed sources of Reuters said that ByteDance has 45 days to seal a deal with Microsoft over TikTok. Microsoft said it would ensure that that data on TikTok users in the US would remain in the country and that data placed elsewhere would disappear after it has been moved.
However, acquiring part of TikTok may have an impact on Microsoft’s relationship with Facebook, which considers ByteDance as a rival. Microsoft had $240 million worth of investments in Facebook in 2007. Since then, the two firms have worked together on various initiatives.
In June, Microsoft said it would end its Mixer video game streaming service, compelling users to switch to Facebook’s competing product.
Meanwhile, Facebook announced earlier this year that it would close its app called Lasso, which has similar features to those of TikTok.
ByteDance's accusation against Facebook
ByteDance recently accused Facebook of “plagiarism and smear.” The Chinese company admits it is facing a lot of complex difficulties.
The Beijing-based firm says that while it is “committed to becoming a global company,” it has faced “all kinds of complex and unimaginable difficulties,” based on a CNBC translation of the Chinese statement.
These include an “intense international political environment, the collision and conflict of different cultures, and the plagiarism and smear of competitor Facebook,” according to the company.
