Published 11:11 IST, August 3rd 2020
Microsoft to purchase TikTok in US, Canada, Australia, New Zealand
Microsoft confirmed its intent to purchase TikTok in the US, Canada, Australia, and New Zealand, which will lead to tech giant owning and operating the app.
Advertisement
Microsoft Corp confirmed the intent to purchase TikTok service in the US, Canada, Australia, and New Zealand, which will lead to tech giant owning and operating TikTok in these markets. The confirmation comes after Microsoft CEO Satya Nadella held talks with US President Donald Trump as the latter raised concern over the security arising out of the use of China-based social media app.
Microsoft said in a statement that the company “fully appreciates” the importance of addressing the concerns, adding that it is committed to acquiring TikTok “subject to a complete security review”. It also emphasised on providing “proper economic benefits” to the US, including the Department of Treasury.
“Microsoft will move quickly to pursue discussions with TikTok’s parent company, ByteDance, in a matter of weeks, and in any event completing these discussions no later than September 15, 2020,” the tech firm added.
Microsoft and ByteDance have notified the Committee on Foreign Investment in the United States (CFIUS) regarding 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. The company may invite other American investors to participate in the purchase on a minority basis.
Data to be transferred to US
The American tech giant assured that all private data of TikTok US users will be transferred to the United States and will remain there. It would also ensure that the data currently stored or backed-up outside the United States are deleted from servers outside the country after it is transferred, said Microsoft.
“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,” the company said.
It said that the “world-class security, privacy, and digital safety protections” will be added to the service while retaining the experience that TikTok users currently love. Appreciating the “personal involvement” of Trump, the tech firm said that the discussions are preliminary and there can be no assurance that a transaction which involves Microsoft will proceed.
11:12 IST, August 3rd 2020