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ByteDance reportedly offered to sell TikTok American operations to Microsoft

By Cookie Monster - on 2 Aug 2020, 10:24am

ByteDance reportedly offered to sell TikTok American operations to Microsoft

ByteDance, the owner of popular video-sharing mobile app TikTok, has reportedly offered to sell its American operations.

Two sources familiar with the matter told Reuters that ByteDance's concession came shortly after U.S President Trump decided to ban TikTok. ByteDance's previous proposed deal involved keeping a small stake in the U.S operations of TikTok, but the Trump administration rejected it.

The new proposed deal will see ByteDance exit completely and allowing Microsoft to take over TikTok operations in the U.S. In addition, ByteDance investors based in the U.S may be given minority stakes in the business. Under the new deal, Microsoft will be taking the lead in protecting all U.S user data and there could be another U.S company to take over TikTok.

CNBC reported yesterday that Microsoft is interested in acquiring TikTok and has been negotiating with ByteDance for some time. The U.S government believes TikTok under ByteDance poses a national security risk because of the U.S user data it collects. 

Source: Reuters