Microsoft 'committed' to buying TikTok, to settle deal by September 15

Microsoft has confirmed that it will continue to hold discussions on potential TikTok purchase in the United States, following a conversation between Microsoft CEO Satya Nadella and President Donald Trump.

The announcement comes days after Trump announced that he would sign an executive order to ban Chinese app TikTok in the US. Microsoft, in its blog post, said that it is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the US.

US-based tech giant The Redmond will hold talks with TikTok’s parent company ByteDance and will complete discussions by September 15 this year.

The discussions with ByteDance will build upon a notification made by Microsoft and ByteDance to the Committee on Foreign Investment in the United States (CFIUS). 

The two companies have provided notice of their intent to explore a preliminary proposal that would involve a purchase of the TikTok service in the United States, Canada, Australia, and New Zealand and would result in Microsoft owning and operating TikTok in these markets. Microsoft also said that it might invite other American investors to participate on a minority basis in this purchase.

The new structure will add security, privacy, and digital safety protections. Microsoft further said that the operating model for the service would be built to ensure transparency to users as well as appropriate security oversight by governments in these countries. 

Microsoft will ensure that all private data of TikTok’s American users is transferred to and remains in the United States. If any data is currently stored or backed-up outside the US, Microsoft will take measures to ensure that the data is deleted from servers outside the country after it is transferred.

“These discussions are preliminary and there can be no assurance that a transaction which involves Microsoft will proceed. We do not intend to provide further updates until there is a definitive outcome to our discussions,” the blog post read.