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Microsoft Says Looking To Wrap Up TikTok Purchase Talks By Sept. 15, After CEO's Conversation With Trump

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Microsoft Says Looking To Wrap Up TikTok Purchase Talks By Sept. 15, After CEO's Conversation With Trump

Microsoft Inc. (NASDAQ: MSFT) announced Sunday it was prepared to continue discussions on the purchase of the short-form video app TikTok.

What Happened

The company's CEO Satya Nadella had a conversation with President Donald Trump and is “prepared to continue discussions to explore a purchase of TikTok in the United States,” it said in a statement.

Microsoft noted it would move quickly to pursue discussions with TikTok's China-based parent ByteDance and is looking to complete the discussions by September 15.

The two companies have previously informed the Committee on Foreign Investment in the United States of a proposal involving the purchase by Microsoft of TikTok’s service in the United States, Canada, Australia, and New Zealand.

Why It Matters

The video app has more than 500 million users with 80 million active users in the U.S. The app is under scrutiny by the U.S. administration over privacy concerns along with other Chinese apps.

Last Friday, Trump had made clear his intention of banning the app, saying, “I have that authority. I can do it with an executive order or that."

The president made the statement on the same day as news broke that Microsoft was considering buying TikTok from ByteDance.

The Chinese company wanted to hold on to a small stake in the video app but the White House didn't approve of it.

Microsoft said that it appreciates the government and Trump’s personal involvement and it “continues to develop strong security protections for the country.”

The company co-founded by Bill Gates claimed it would move TikTok user's data to the U.S. and ensure that data stored outside the country is deleted.

Price Action 

Microsoft shares closed 0.54% higher at $205.01 on Friday.

 

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