Microsoft Seeks To Wrap Up TikTok Talks Before Deadline

Microsoft plans to finish its acquisition talks with TikTok within the next three weeks, ahead of a Sept. 15 deadline, CNBC reported. Estimates on how much the deal would actually amount to range widely — from $10 billion all the way to $30 billion.

A Microsoft blog reported Aug. 2 that the company would “move quickly to pursue discussions with TikTok’s parent company, ByteDance,” based in China.

Talks between Microsoft and ByteDance resumed after Microsoft CEO Satya Nadella talked with President Trump, who had previously brought the talks to an end by saying he opposed the deal. The president has said that ByteDance’s TikTok app is used to spy on Americans by collecting data and giving it to the Chinese government.

Trump has threatened to ban TikTok in the U.S. by Sept. 15 if it isn’t sold to a U.S. company.

As part of the resumption of talks, Microsoft pledged to ensure such things as having the private data of TikTok’s American users transferred to and, afterwards, remain in the U.S. Also, Microsoft said that whatever data stored outside the U.S. would be deleted from servers.

CNBC reported that very few U.S. companies have the wherewithal to transfer large amounts of data over to its own systems within a year. This would include 15 million lines of artificial intelligence. Microsoft does have the capacity — and it has the cash to pony up for the TikTok deal.

That makes Microsoft a strong contender to buy the popular video-sharing app.

U.S. Treasury Secretary Steve Mnuchin is “deeply involved” in the situation, CNBC said.

Concerns abound over how Trump’s actions against TikTok may affect U.S. companies. At the same time, tensions between the two countries are rising both in terms of economic competition and superpower struggles.

The Committee on Foreign Investment in the United States, which probes such things as international mergers and acquisitions, has launched a TikTok investigation. The interagency committee plans to look at how the app collects, stores and uses data.

Get our hottest stories delivered to your inbox.

Sign up for the PYMNTS.com Newsletter to get updates on top stories and viral hits.

——————————

PYMNTS TV LIVE OCTOBER SERIES: B2B PAYMENTS 2021 – WHAT WILL YOU CHANGE?

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border. Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Recent Posts

Payroll Management Firm Papaya Global Notches $40M In Series B

Global payroll company Papaya Global has landed $40 million in a Scale Venture Partners-led funding…

15 mins ago

Zomato, Swiggy Reprimanded By Google Over In-App Payments

Food delivery apps Zomato and Swiggy have been put on notice by the Google Play…

37 mins ago

Banks Push Back On Possible Banking Charters For Big Techs Like Amazon And Facebook

A U.S. House committee this week began reviewing the idea of allowing the likes of…

1 hour ago

Memo Bank Launches Interest-Bearing Account For Businesses

Paris-based business bank Memo Bank is offering a new product three months after obtaining its…

1 hour ago

Lending Platform October Raises Funding For SMB Loans

Lending marketplace October worked with major investors and raised €258 million (close to $303 million) over the…

1 hour ago

What’s Next After The Great GDP Snapback?

For the U.S. GDP, a slight improvement of some very bad numbers is an improvement,…

1 hour ago