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Microsoft to operate ByteDance’s TikTok to remain in the U.S, as per report

ByteDance might divest its TikTok operations and sell it to the Microsoft.

Few days back, India banned 59 Chinese applications including TikTok because of privacy concerns and they are prejudicial to sovereignty, integrity and defence of India. And, the U.S. government has been investigating potential threat to national security because of the Chinese company’s control of the application.

As per the latest report, Chinese giant ByteDance might sell its TikTok operation to the Microsoft to avoid ban in the country. If deal between the two go ahead, it will give the Microsoft a popular social media application and also relieve the U.S. government pressure on the Chinese owner of this video sharing application.

Microsoft to operate ByteDance's TikTok to remain in the U.S
Microsoft to operate ByteDance’s TikTok to remain in the U.S

ByteDance was earlier looking for a deal that would allow the Chinese giant to retain a minority stake in the TikTok, but that plan was dropped recently after the U.S government rejected the proposal. Both the companies are yet to confirm any official news of deal between them and whether TikTok will be banned in the U.S or not.

Yesterday, U.S President Donald Trump said that he had decided to ban the popular application (TikTok). To avoid this ban, ByteDance has agreed to divest its operation completely from the TikTok in the United States. About 70 percent of the ByteDance’s outside investors come from the U.S. Now, TikTok has emerged as a flashpoint between the two countries.

If the deal goes through, Microsoft will manage all the operations of TikTok in the country and will also in charge of protecting all U.S. user data. ByteDance has acquired Shanghai based video sharing application – Musical.ly in a $1 billion deal back in 2017 and relaunched the application with the name as TikTok the following year.

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Rohan Jain

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