Posted on 08/03/2020 5:03:12 AM PDT by RandFan
President Trump reportedly allowed Microsoft to pursue an acquisition of the wildly popular short-form video app TikTok on the condition that a deal be reached within 45 days.
The Treasury Department's Committee on Foreign Investment in the United States (CFIUS), which scrutinizes foreign deals for potential security risks, gave the deadline to Microsoft and ByteDance, the Chinese firm that owns the app, Reuters reported, citing three people familiar with the matter.
The White House and CFIUS did not immediately respond to requests for comment from The Hill.
TikTok has been under a cloud of scrutiny from the Trump administration and members of Congress over fears that Americans' user data is not secure in the hands of a Chinese-owned app. Trump said Friday that he was exploring a ban of the app's operations in the U.S. and expressed opposition to the idea of an American company like Microsoft acquiring it.
But Microsoft said Sunday evening that it would move forward with efforts to acquire the service following a discussion between Trump and Satya Nadella, the tech giant's chief executive.
"Microsoft fully appreciates the importance of addressing the President’s concerns," the company said in a blog post. "It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury."
Microsoft said that it would complete discussions with TikTok by Sept. 15. The companies have both provided a notice of intent to CFIUS to explore a proposal that would give Microsoft ownership of the app in United States, Canada, Australia, and New Zealand.
"These discussions are preliminary and there can be no assurance that a transaction which involves Microsoft will proceed," the company added.
Democrats and Republicans are broadly in alignment when it comes to the view that TikTok presents a national security risk. Lawmakers have argued that local laws in China present the opportunity for the government in Beijing to seize user data from Americans.
TikTok has strongly pushed back against these allegations, with CEO Kevin Mayer calling them "rumors and misinformation." After Trump threatened to ban the service in the U.S. on Friday, the company said in a statement that Americans' information is secure.
"TikTok US user data is stored in the US, with strict controls on employee access," a spokesperson told The Hill. "TikTok's biggest investors come from the US. We are committed to protecting our users' privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform."
Several lawmakers have come out in support of a deal between Microsoft and ByteDance to avoid restrictions on TikTok, which boasts roughly 100,000 American users. Sens. Marco Rubio (R-Fla.) and Lindsey Graham (R-S.C.) both expressed support for the prospective deal over the weekend.
"As I have shared with POTUS & @WhiteHouse if the company & data can be purchased & secured by a trusted U.S. company that would be a positive & acceptable outcome," Rubio said.
But it is unclear how receptive Trump administration officials are to such a scenario. Speaking on Fox News on Saturday, White House trade adviser Peter Navarro said that Microsoft should be met with skepticism.
"Microsoft is the software that the People's Liberation Army and Chinese government run on," Navarro said.
My very limited understanding is that Tik Tok is for slutty chicks to sing and dance, no?
The ChiComs are getting something out of it. Likely more than t&a.
Yes basically... people record short clips on their phone and upload/share them. I dont get it either!
China can’t even entirely ban Free Republic. I greatly doubt our government can ban Tic Toc.
To ban them we would need to prove a national security threat?
I think no ban could stand without a formally declared state of war.
My youngest daughter and her boy friend live on tictok.
Pretty sure her life will be irreperably harmed if Trump bans it.
Where can I write and possibly donate to this most worthy cause?
Satya and Ivanka are great pals: she announced her creepy “learn something new” initiative a couple of werks ago with the two of them front and center for the photo op.
Trump should have had Navarro as his chief of staff running his whole admin from the start.
NOW We are talking!!
Don’t worry I dont think it will be banned. Looks like it will be sold to Microsoft.
Can Microsoft make it less cringy?
They will make it even worse!
Executives at Microsoft believe their losing the younger generation which explains the interest in TikTok.
I hope they don’t include it in Windows in future....
Here’s a troubling thought - Introducing Windows TikTok!
If Microsoft buys TikToc, it will: (1) Rename it 6 times; (2) Abandon it after two years of consumers spending a lot of money (e.g., Zune, Windows Phone, Invoke, Kin, Nokia, Microsoft Band, Groove Music).
Great move.
Not banned but not usable.
No, that is a very uneducated opinion of Tik Tok, there are far more older people on it now than younger. It’s a very fun and sophisticated crowd on there now. There is also a huge Trump movement on there.
Tik Tok is the only “free speech” platform out there today. The posts on HyrdroxyChoroquine that were pulled everywhere else were up there for all to see, and still are.
Tik Tok is the future of social media, with almost 2 billion downloads and everyone rushing to create their own Tik Tik like service it’s here to stay.
Basically, the older crowd up there knows Facebook is dead, it’s not hip, borning, the mass rush over to Tik Tok has been amazing.
I guess I’ll never know since I have no social media accounts. I have books, business, and the outside world.
Enjoy enriching Commie Chinks.
There are 1,000s of mobile apps written by Chinese companies. Frankly I don’t give a crap if Tik Tok is written by a Chinese company. Wallmart is fool of Chinese stuff, every electronic device you have in your home, the computer you were on was produced in China.
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