United States vs China: Microsoft won’t be acquiring the Chinese Origin TikTok video uploading App as negotiations fail
The Microsoft-ByteDance negotiations have failed and in all probability, the popular Chinese origin short video uploading App, TikTok would be banned from tomorrow. As you may remember, President Trump’s Executive Order mandates TikTok to find a U.S. based buyer by 15th September 2020 or shut shop in the United States.
Microsoft has announced that it won’t be acquiring TikTok as the negotiations have failed. “ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft. We are confident our proposal would have been good for TikTok’s users while protecting national security interests. To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement. We look forward to seeing how the service evolves in these important areas,” Microsoft announced.
The TikTok buyout negotiations between Microsoft and ByteDance commenced after it became apparent that President Trump would ban TikTok for data security reasons. In fact, President Trump had approved the Microsoft takeover of TikTok operations in America, Canada, Australia, and New Zealand.
Now with Microsoft out of the race, TikTok has only one day to find a suitor before the U.S. ban comes into effect. TikTok or ByteDance has not yet commented either on the failure of Microsoft takeover or its future but it is well known that Google parent, Alphabet, and Oracle are also in the race to acquire the popular Chinese App.
But it might just be too little too late as the September 15 deadline for the TikTok is almost here, and the Chinese company could end up shutting down in the United States.
While ByteDance and TikTok want to continue its operations in the United States, China is not too happy about the takeover plans. A report from Reuters revealed that the Beijing government would rather see TikTok giving up on its American operations rather than allow a potential takeover.