Microsoft and ByteDance reportedly pause TikTok acquisition talks

Microsoft has reportedly put talks about its possible acquisition of TikTok’s operations in the U.S. on hold, according to The Wall Street Journal.

The tech giant has halted plans with TikTok parent company ByteDance after U.S. President Donald Trump voiced his opposition regarding the acquisition.

Although the acquisition does not seem to be dead or cancelled, the companies are waiting to get a better understanding of where the Trump administration stands and if it plans to take any action against TikTok.

Prior to Trump’s opposition towards the deal, Reuters revealed that ByteDance reportedly agreed to divest the U.S. operations of TikTok, and that Microsoft will allegedly take over. Under the new deal, ByteDance would completely exit from TikTok and Microsoft would take over the social media app in the U.S.

ByteDance’s new proposal would put Microsoft in charge of protecting all U.S. user data. The plan would also allow for another U.S. company other than Microsoft to take over TikTok in the U.S.

All of this comes as Trump told reporters on July 31st that his administration was going to ban TikTok from operating in the U.S. The popular video app has come under criticism for its privacy practices and its potential ties to the Chinese government.

TikTok’s U.S. general manager Vanessa Pappas has stated that TikTok does “not plan on going anywhere” and that it’s “here for the long run.”

Source: The Wall Street Journal Via: The Verge

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