This archive report was first published on 5 August 2020.
Microsoft has confirmed its ongoing engagement with ByteDance to acquire TikTok's assets in the United States, with discussions expected to conclude by September 15, 2020, as stated by Microsoft CEO Satya Nadella in a blog post published on August 2, 2020.
The acquisition follows a notification made by both Microsoft and ByteDance to the Committee on Foreign Investment in the United States (CFIUS), which contained a preliminary proposal for the purchase of TikTok's service in the United States, Canada, Australia, and New Zealand.
Should the deal proceed, Microsoft will own and operate TikTok in these markets, with the possibility of inviting other American investors to participate on a minority basis. The company has also pledged to revamp TikTok's security features to improve its privacy and digital safety protections.
However, Microsoft has cautioned that the discussions are preliminary and there is no assurance that a transaction will materialize.
The proposed sale has sparked concerns about US-China tensions, which have seen the two nations impose economic sanctions and close consulates in some cities. The Trump administration has accused TikTok of providing data to Chinese authorities, prompting President Trump to give the go-ahead for Microsoft to pursue the acquisition.
China has decried the forced move to sell TikTok, with the Ministry of Foreign Affairs stating that the latest attack violates the World Trade Organisation's principles of openness, transparency, and non-discrimination.
