Microsoft Confirms Plans to Acquire TikTok App

The American technology company Microsoft has confirmed that it is in talks with the Chinese company ByteDance regarding the acquisition of its popular social app TikTok.

Microsoft stated that it continues to collaborate with U.S. authorities regarding the agreement and intends to conclude discussions by September 15.

If the deal is finalized, Microsoft could simultaneously resolve controversies in Washington while also increasing its strength in the consumer technology sector.

The announcement was made two days after media reports indicated that Microsoft was interested in acquiring the TikTok app. Shortly after the media reports were published, U.S. President Donald Trump stated that he opposes the idea of Microsoft buying TikTok and that he will ban the app in the U.S. because he believes the company shares its user data with Beijing.

Microsoft is considering acquiring TikTok in the U.S., Canada, Australia, and New Zealand, and may also invite other American investors to participate in the acquisition, Microsoft stated, adding that its CEO Satya Nadella has spoken with Trump. The company did not disclose the terms of the deal.

– This new structure would be based on the experience that TikTok users currently enjoy, while simultaneously adding global security, privacy, and digital security protection. The operational model of the service would be designed to ensure transparency for users, as well as appropriate security oversight by authorities in those countries – Microsoft stated.

Trump agreed to give ByteDance 45 days to finalize a deal with Microsoft regarding TikTok, which has 100 million American users, Reuters reported, citing anonymous sources.

Microsoft stated that it will ensure that data on American TikTok users is located in the U.S. and that data stored elsewhere will be deleted after being transferred.

A TikTok spokesperson said on Sunday that data on American TikTok users is already stored in the U.S. The company insists that it does not share user data with Beijing.

It is unclear how much Microsoft would have to pay for the TikTok app. Reuters reported last week that ByteDance’s expected valuation for the app exceeded $50 billion.

TikTok allows users to create short video clips – often with basic effects and music – which has become very popular.

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