MICROSOFT BEGIN TALKS TO ACQUIRE TIKTOK
Microsoft has confirmed that talks have begun with Chinese technology company ByteDance to acquire its trendy social app TikTok in the U.S.
The announcement was made in a statement released on Sunday, August 2nd, 2020.
The statement comes two days after media outlets reported that Microsoft was interested in acquiring the app.
The company said it intends sealing the deal on or before September 15th.
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The completion of the deal would mean that Microsoft could simultaneously resolve a recent controversy in Washington and gain power in consumer technology.
However, President Trump said that he opposed the idea of Microsoft buying TikTok and that he would move to ban the app in the U.S.
The two companies have looked at Microsoft buying TikTok in the U.S, Canada, Australia and New Zealand.
Reports also suggest that Microsoft might offer other American investors to get involved in the acquisition.
"This new structure would build on the experience TikTok users currently love, while adding world-class security, privacy, and digital safety protections.
"The operating model for the service would be built to ensure transparency to users as well as appropriate security oversight by governments in these countries," Microsoft said.
Acquiring part of TikTok could complicate Microsoft's relationship with social media company Facebook, which views ByteDance as a competitor.
Microsoft invested $240 million in Facebook in 2007, and since then the two companies have worked together on various initiatives.
In June, when Microsoft announced that it would close its Mixer video game streaming service, it encouraged users to switch to Facebook's competing product.
Facebook said earlier this year that it would shut down an app called Lasso that bore a resemblance to TikTok in the sense that both let users record short videos and accompany them with songs.
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