In a blog post, the tech firm has confirmed talks to buy TikTok’s operations in the US, Canada, Australia, and New Zealand. Microsoft plans to close the deal by maximum September 15. The software giant’s public statement is followed by a closed-door discussion with TikTok officials and US President.
The companies have 45 days of time to hash out an acceptable plan, the deadline is insisting day the White House. People familiar with the deal said that the two companies are yet to work out key details for a deal including price.
The Chinese short video sharing app has become a centre of controversy amid rising US-China trade tensions. The US lawmakers have raised concerns over the way Chinese parent company handles user data. The app came into the focus after anti-Trump activists used the platform to disrupt campaign activities.
In an official statement, Microsoft said, “Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.”
While the TikTok spokesperson declined to comment, Microsoft has been in discussions with Trump. It will make the public announcement soon. The app was launched in the US following the purchase of the lip-syncing music app, which later transformed into TikTok.
In June this year, Trump and Secretary of State Mike Pompeo announced banning the app from the US. Microsoft started a preliminary deal discussion in July involving Nadella, Microsoft chief financial officer Amy Hood and President, Chief Legal officer Brand Smith.
TikTok has been a significant employer in the US. The app has hired over 1,000 people in the US this year. It will be hiring another 10,000 into high paying job roles. A deal will help Microsoft enter the social media and advertising market which is currently dominated by Facebook, and Google.