Microsoft Purchase of TikTok Could Be Announced As Early As This Afternoon
An agreement between Microsoft and ByteDance, the parent company for TikTok, could be announced as early as this afternoon.
Multiple sources close to the situation confirmed to Outkick that TikTok employees were called to an internal town hall this morning where they were told about the agreement, as well as to expect a public announcement.
An internal Microsoft report stated the negotiations were being expedited and that an agreement would need to happen before Sept. 15, 2020. It appears that timeline has accelerated.
Additionally Microsoft announced that it would operate the platform across multiple continents and welcomes further American investment.
"The discussions with ByteDance will build upon a notification made by Microsoft and ByteDance to the Committee on Foreign Investment in the United States (CFIUS). The two companies have provided notice of their intent to explore a preliminary proposal that would involve a purchase of the TikTok service in the United States, Canada, Australia, and New Zealand and would result in Microsoft owning and operating TikTok in these markets. Microsoft may invite other American investors to participate on a minority basis in this purchase."
TikTok has come under fire in recent months and weeks from President Donald Trump, who among many others, has accused the Chinese-owned app of collecting data on Americans and feeding it to the Chinese government.
The popular video-sharing app has repeatedly denied the allegations.
Microsoft has stated it will look to ensure proper data protection, whether or not the alleged breaches are true.
"Among other measures, Microsoft would ensure that all private data of TikTok’s American users is transferred to and remains in the United States. To the extent that any such data is currently stored or backed-up outside the United States, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred.
"Microsoft appreciates the U.S. Government’s and President Trump’s personal involvement as it continues to develop strong security protections for the country."