14 DAY TRIAL // United States President Donald Trump explained today at the White House that TikTok must find a new owner by September 15, otherwise the service would be banned.
While Microsoft is indeed in pole position to take over TikTok, and President Trump said the software giant has the go-ahead to continue negotiations, pretty much anyone can purchase the Chinese service as long as it’s based in America.
Trump emphasized that whoever buys TikTok must be a very secure and “very American” company, as per a report from the NYT.
Microsoft also expecting deal by September 15
“It can’t be controlled for security reasons by China,” Trump said. “A very substantial portion of that price is going to have to come into the Treasury of the United States, because we’re making it possible for this deal to happen.”
In a statement shared earlier this week, Microsoft explained that it’s already discussing with ByteDance, TikTok’s parent company, and the US government a potential takeover, with the outcome to be announced by September 15.
“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,” the company said.
Microsoft guarantees that once the TikTok acquisition is complete, the data of American users will be moved to the United States and then stored locally.
One of the reasons President Trump wants TikTok banned is its alleged ties with the Chinese government, so a potential Microsoft takeover would guarantee that all user data remains in control of American companies.
Most likely, the takeover talks would be finalized rather sooner than later, and we expect an announcement in this regard by the end of the month.