Microsoft Corp disclosed on Sunday that it would continue negotiations to buy popular short-video app TikTok from Chinese internet group ByteDance and that it wanted to complete discussions by the middle of next month.
Microsoft issued a statement after a conversation between its chief executive officer, Satya Nadella, and U.S. President Donald Trump. The company said that if it purchases TikTok, it would see to it that all private information of TikTok's American users is moved to and remains in the U.S.
Microsoft pointed out that it fully appreciates the significance of addressing Trump's concerns. A full security evaluation of the Chinese app will be carried out, the company said. Microsoft will also be required to provide the U.S. government with a list of the "economic benefits" the app can give the country, it disclosed in a blog post.
It is Microsoft's first public acknowledgment that it is engaged in discussions to take full control of TikTok, a contract that could be valued billions of dollars. News of the discussions first trickled out late Friday. Meanwhile, Microsoft also disclosed it was considering buying TikTok services in Australia, Canada, and New Zealand.
A TikTok takeover would set the stage for a massive user base of digitally sharp teens and 20-somethings for Microsoft, a $1.5 trillion empire that owns Skype, Xbox, and LinkedIn on top of its institutional Windows operating system products.
TikTok has been the focus of rigid international examination lately, with different governments alleging the video-sharing platform divulges users' data with the Chinese government. Last week, Trump claimed he would bar TikTok and a Bloomberg report said he may even order China-headquartered mother firm ByteDance to sell the app.
Underscoring the importance of security, Microsoft said it plans to add new layers of protection and privacy safety nets to TikTok and provide appropriate security oversight by governments in these countries. Exactly what Microsoft views as "appropriate" remains unclear.
ByteDance unveiled TikTok in 2017, then acquired Musical.ly, a video service that is very popular among teens in the U.S. and Europe, and merged the two. Douyin, a twin platform, is available for Chinese users.
TikTok's fun clips and ease of use has made the app wildly popular, and U.S. tech companies like Snapchat and Facebook consider the platform a competitive threat. TikTok has claimed it has tens of millions of U.S. users and hundreds of millions around the world.
