Microsoft released a statement regarding the potential deal with ByteDance:
“Microsoft fully appreciates the importance of addressing the President’s concerns. 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.”
The deal deadline has been placed on Microsoft and ByteDance by the Committee on Foreign Investment in the United States (CFIUS), a government panel that investigates business deals for potential national security risks. CFIUS has the authority to block the deal if there are major security risks.
If Microsoft were to acquire the app, it would take charge of TikTok’s operations in Canada, Australia, New Zealand, and the United States. Furthermore, all private user data would be transferred and maintained within the United States.
U.S.-China relations have soured in recent months over claims of corporate espionage, unfair trade, the spread of COVID-19, and China’s dictatorial actions in Hong Kong with the inception of a national security law.
