10 August 2020
Microsoft has officially confirmed that it is actively looking to acquire TikTok, a popular shot video-sharing social media platform. It made the announcement through the latest post on Microsoft Corporate Blogs. The post is essentially a response to recently surfaced reports about President Trump's intentions of banning TikTok in the United States.
The post mentions that Microsoft CEO Satya Nadella has already had a conversation with Donald Trump, president of the United States. The company is further ready to have a talk with the President on the matter. It wants to hear all the concerns of the government and try to resolve them in order to get official clearance for the deal.
In the post, 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. 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. During this process, Microsoft looks forward to continuing dialogue with the United States Government, including with the President."
If the deal passes all the obstacles and gets completed, Microsft would be owning and controlling TikTok's operations in the United States, Canada, Australia, and New Zealand. It along with ByteDance have already submitted a notice of intent that shows both company's interest in completing the deal.
TikTok is a Chinese-owned company which is the primary reason for such close scrutiny by not only the government but President Trump himself. He has always been very cautious about dealing with Chinese companies and as a result, we have already seen him put a ban on Huawei that refrains its smartphones and other devices from running Google Play services and apps.