Microsoft Confirms Talks For The Acquisition Of Tiktok

Microsoft confirms talks for the acquisition of TikTok USA, Canada, Australia and New Zealand and intends to conclude an agreement by 15 September.


Microsoft confirms talks for the acquisition of TikTok USA, Canada, Australia and New Zealand and intends to conclude an agreement by 15 September.

microsoft-talks-acquisition-tiktok


Carrying out the threat to ban TikTok from the United States would have been seen as an attack on online freedom of expression by rights groups such as the American Civil Liberties Union (ACLU). A mistake not to be made in the run-up to the next US presidential elections? Donald Trump is therefore experimenting with a different approach: to put the application of video sharing of Chinese origin under the American bosom and thereby strengthen the domination of the United States in the field of online services.


TikTok has been in the sights of the American authorities since December 2019, when the Federal Court of California accused the social network of transferring private user data to servers in China. The situation led to a threat last weekend by President Donald Trump to ban the application from the US by presidential decree. Following Donald Trump's statements, ByteDance proposed to completely divest the US social networking business in an attempt to salvage a deal with Washington. The US president has just given ByteDance - TikTok's parent company - 45 days to negotiate a deal to be taken over by Microsoft.

The technology giant for its part confirms the existence of talks with the Chinese company:

 "Following a conversation between Microsoft CEO Satya Nadella and President Donald Trump, Microsoft is prepared to continue discussions to explore the purchase of TikTok in the United States.


Microsoft is fully aware of the importance of addressing the President's concerns. It is committed to acquiring TikTok subject to a full security review and to providing appropriate economic benefits to the United States, including the U.S. Treasury.


Microsoft will expeditiously continue discussions with TikTok's parent company, ByteDance, in a few weeks' time and in any event complete these discussions by September 15, 2020. During this process, Microsoft looks forward to continuing the dialogue with the United States Government, including the President. »

Giving lessons in personal data management to China and the rest of the world?

That is what the early details of the talks under the watchful eye of the U.S. Foreign Investment Committee suggest. The two companies have indicated their intention to study a preliminary proposal that would involve the purchase of TikTok's service from the United States, Canada, Australia and New Zealand. In the event of an agreement, Microsoft will own and operate TikTok in these markets. The U.S. technology giant promises to maintain the user experience for which users value the service. In addition, they will benefit from the addition of "world-class security, privacy and digital safety protections" and "transparency for users and appropriate security oversight by the governments of these countries. »


As additional measures, Microsoft will need to ensure that all private data of US users is transferred to and remains in the US. In the event that such data is stored or backed up outside the US, Microsoft will be responsible for ensuring that such content is deleted from servers outside the US after transfer.

Discussions are still at the preliminary stage

Nothing, as Microsoft points out, can at this stage give any assurance that a final agreement will be reached. In the event of a settlement being reached between the two parties, what seems already clear in advance is that, contrary to its wish to retain a minority shareholding in TikTok US, ByteDance will be completely ruled out. Instead, Microsoft could call on other US investors to acquire minimal shares in the company. To date, 70% of the funds raised by the Chinese company have come from American investors. The value of ByteDance is estimated at $140 billion, based on estimates that surfaced earlier this year.



Sources: Microsoft



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SimTurax Tech Blog: Microsoft Confirms Talks For The Acquisition Of Tiktok
Microsoft Confirms Talks For The Acquisition Of Tiktok
Microsoft confirms talks for the acquisition of TikTok USA, Canada, Australia and New Zealand and intends to conclude an agreement by 15 September.
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