Washington: US President Donald Trump has given Microsoft CEO Satya Nadella 45 days to complete the acquisition of the Chinese app TikTok. Trump had earlier threatened to completely ban the apps in the country. Trump’s reversal of a ban that was to come on Saturday followed pressure from globalists within the Republican Party who felt such a strong-arm action would reflect poorly on the administration, particularly since TikTok has over 100 million young users in the US. There was also the implicit threat of retaliation from China that would affect many American companies such as Apple, Tesla, and Microsoft itself, leading to an all-out trade war, besides inviting legal challenges.
A case was made for allowing Microsoft to continue its negotiations with TikTok, with any eventual acquisition involving the app’s complete split from the parent company in China, including transfer of all data to the US. ByteDance, the Chinese company that owns TikTok, had initially planned to hold on a minority stake while selling most of its US operations, an idea that Trump rejected, wanting a total 100% acquisition. “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 US, including the US Treasury,” Microsoft said in a statement following Trump’s call with Nadella.
Microsoft said there was no certainty a deal - which would involve a purchase of the TikTok service not just in the US, but also in Canada, Australia, and New Zealand - but it was aiming to conclude the negotiations by September 15. Microsoft had been talking to ByteDance even before Trump’s sudden rage against the foreign entity, ostensibly because some young Americans used the app to undermine his rally in Oklahoma, but now the clock is ticking for the Seattle giant even as it is being cast a purchasing arm of the US government. The deal will be overseen and scrutinised by the Committee on Foreign Investment, a US government panel that can block any deal if it is not in national security interest.
