Company says takeover talks are still underway

Aug 3, 2020 04:25 GMT  ·  By

Microsoft has released a statement to confirm the TikTok takeover talks but at the same time to reveal that despite the roadblocks that the two companies have hit lately, all these negotiations are set to continue.

People familiar with the matter revealed during the weekend that Microsoft suspended the talks with TikTok officials over a potential deal, as United States President Donald Trump said that he still wants to ban the app no matter who owns it.

“Microsoft fully appreciates the importance of addressing the President’s concerns,” the Redmond-based software giant explains.

TikTok, which the President wants to ban due to security concerns over a possible collaboration with the Chinese government, could end up being owned and operated by Microsoft in several key markets, including the United States, Canada, Australia, and New Zealand. Microsoft says that some other American investors could join the deal on a minority basis.

Possible announcement in about a month

A deal between the two is expected no later than September 15, and Microsoft says that during this whole time, it’s discussing not only with ByteDance, TikTok’s parent company, but also with the United States Government, including with the President himself.

Microsoft guarantees that once it takes over TikTok in the United States, American users would benefit from enhanced privacy, as all their data will be located in the country.

“Among other measures, Microsoft would ensure that all private data of TikTok’s American users is 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, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred,” Microsoft says.

The company hasn’t obviously provided any specifics on the financial terms of the deal and explained that no further updates would be shared until the talks come to a conclusion.

Microsoft Statement On TikTok Takeover