Negotiations with the parent company ByteDance should be completed by mid-September.Microsoft will return to negotiations with the Chinese company ByteDance on the purchase of TikTok in the United States.
The American side came to this decision after the CEO of the organization Satya Nadella discussed the deal with President Donald Trump.
The official Microsoft blog says that the negotiations are a matter of several weeks, and they are scheduled to be completed no later than September 15. “During this process, Microsoft hopes to continue the dialogue with the American government, including the president,” the press release says.
If the deal goes through, Microsoft will own TikTok in the United States, Canada, Australia and New Zealand, as well as manage the service in these markets. At the same time, the company announced the possible involvement of other American investors in the transaction.
Microsoft plans to provide enhanced security and privacy measures, guaranteeing users transparency in these matters. The company also declares that all personal data will be stored in the United States. In other countries, ByteDance will continue to be responsible for the development and management of TikTok.
Last Friday, Donald Trump announced his intention to block TikTok in America and promised to sign the necessary documents by August 1. However, over the weekend, the president changed his mind under pressure from his advisers and supporters from the Republican Party. According to Reuters, this is largely due to possible legal problems and the loss of a large number of young audiences on the eve of the presidential election.
Initially, Trump threatened to block TikTok in the United States amid deteriorating relations with China related to trade, cybersecurity, the spread of coronavirus and the issue of Hong Kong’s autonomy. The popular application, which is used by 100 million people in America, was suspected of spying on users.
It is unknown how much Microsoft is willing to pay for the purchase of TikTok. According to Reuters, the cost of the service is estimated by investors at $ 50 billion. ByteDance executives believe that the application should be priced significantly more expensive. At the same time, pressure from the US government can reduce the market value of the brand.
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