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Microsoft Corp. said Sunday it is ready to continue acquisition talks with China’s TikTok, following a conversation between CEO Satya Nadella and President Donald Trump.
“Microsoft fully appreciates the importance of addressing the president’s concerns,” the tech giant said in a blog post Sunday. “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.”
If it were to complete the deal, Microsoft could simultaneously resolve a recent controversy in Washington and gain power in consumer technology.
If that deal goes through for the roughly $5 billion I estimate TikTok’s U.S. operations are worth.
Under a deal, Microsoft would end up owning and operating TikTok operations in the U.S., Canada, Australia and New Zealand. Microsoft said other American investors may take a minority stake.
“This new structure would build on the experience TikTok users currently love, while adding world-class security, privacy, and digital safety protections,” Microsoft said. “Among other measures, Microsoft would ensure that all private data of TikTok’s American users is transferred to and remains in the United States.”
The Trump administration claims TikTok and other Chinese software companies pose risks because the could send private user data to the Chinese government. Critics say banning the up-and-coming TikTok would benefit companies such as Facebook Inc., and Alphabet’s Google ,which are already under government antitrust scrutiny by removing a key competitor.