Microsoft has confirmed that it was in talks with ByteDance to acquire the US arm of its popular video app TikTok, amid reports that US President Donald Trump has agreed to give the Chinese company 45 days to negotiate the sale.
In a statement, Microsoft said Microsoft and ByteDance have provided notice of their intent to explore a deal resulting in Microsoft owning and operating the TikTok service in the US, Canada, Australia and New Zealand. The company said it expects those talks to conclude by September 15.
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The company added that it has discussed with Trump his concerns about security and censorship surrounding such an acquisition. The talks come amid US officials maintaining that TikTok under its Chinese parent poses a national risk because of the personal data it handles.
Trump had on Friday said he was planning to ban TikTok in the US after dismissing the idea of a sale to Microsoft. However, the US president is said to have changed his stand following a discussion with Microsoft CEO Satya Nadella.
"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," the Microsoft statement said.
In its statement, Microsoft said it may invite other American investors to participate on a minority basis in the purchase of TikTok. Financial terms were undisclosed.
TikTok's US user data is stored in the US, with strict controls on employee access, and its biggest investors come from the US, the company said earlier Sunday. "We are committed to protecting our users' privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform,” a TikTok spokesperson said.
A federal committee has been reviewing whether Trump could ban TikTok in the US. Its members agree that TikTok cannot remain in the US in its current form because it "risks sending back information on 100 million Americans," Treasury Secretary Steven Mnuchin said.
