On Sunday, Microsoft said they are “prepared to explore a purchase of TikTok in the United States”.
This is for the first time that Microsoft has confirmed they are in talks with ByteDance, the parent company of TikTok, for the acquisition of the video-sharing platform.
Microsoft has provided notice of their intent to purchase TikTok service in the countries like the US, Canada, Australia, and New Zealand, which would result in Microsoft owning and operating TikTok services in these markets.
It is not clear how Microsoft would divide market territories from other areas where TikTok operates, like Europe and Africa.
The blog post describes the discussions as “preliminary” but addresses privacy concerns, it said the company would “ensure that all private data of TikTok’s American users are transferred to and remains in the United States.
“To the extent that any such data is currently stored or backed-up outside the United States,” the post continues, “Microsoft would ensure that this data is deleted from servers outside the country after it is transferred.”
The recent development came after a conversation between Microsoft CEO Satya Nadella and President Donald Trump.
“Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok after the complete security review and providing proper economic benefits to the United States, including the United States Treasury,” says Microsoft.
The statement further says, “Microsoft wants to acquire TikTok in a matter of weeks, probably before September 15, 2020.”
Microsoft will not purchase the platform entirely on its own investment but will ask investors to participate in the purchase of the platform.