Chinese short video sharing app TikTok has been a critical issue when it comes to escalating trade dispute between China and the United States. Well, from recent turn of events tech giant Microsoft Corp. (MSFT) is looking forward to purchase TikTok from its parent company ByteDance.
Insider sources from Microsoft have revealed that the company is geared towards closing the deal by September 15.
“Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury,” said Microsoft.
U.S officials have also revealed that President Trump has agreed to give ByteDance 45 day to hold talks and reach an agreement with Microsoft concerning sale of Tiktok.
This revelation comes as a backtracking by president Trump from his earlier announcement where he had vowed to ban the app in United States citing data privacy issues, additionally he had also dismissed the acquisition plans.
TikTok has always had problems with United States arising from how it handles users’ data. ByteDance has been doing everything possible to cut links with China even making sure its data is not stored in China. However, all Chinese companies have a binding policy to demanding them to share data with Chinese intelligence groups when need be.
It’s said that advisors of President Trump are the ones who persuaded him to change his mind about TikTok. The Republican Party also had a hand in the decision change as it cautioned Trump that banning the app would detach young voters who use it in upcoming Presidential elections slated for November.
Multiple Republican Senators have been urging Trump to support the acquisition of TikTok by Microsoft. “A win-win in the making,” tweeted Republican Senator Lindsey Graham, following change of stance by President Trump.