Trump Agree On 45-Days Ultimatum To Microsoft In Purchasing Tik Tok
President Donald Trump only agreed to allow Microsoft to negotiate the acquisition of popular short-video app TikTok if it could secure a deal in 45 days, three people familiar with the matter said on Sunday.
The Microsoft move represents an about-face for Trump and prompted the U.S. tech giant to declare its interest in the blockbuster social media deal that could further inflame U.S.-China relations.
Trump had earlier said he was planning to ban TikTok amid concerns that its Chinese ownership represents a national security risk because of the personal data it handles.
The US President changed his mind on banning the social media app, following pressure from some of his advisers and many in his Republican party.
The Microsoft proposed acquisition of TikTok, which boasts 100 millions US users, would offer Microsoft a rare opportunity to become a major competitor to social media giants such as Facebook and Snapchat.
Trump had dismissed the idea of a sale to Microsoft on Friday. But following a discussion between Trump and Microsoft CEO Satya Nadella, the Redwood, said in a statement that it would continue negotiations to acquire TikTok from ByteDance, and that it aimed to reach a deal by Sept. 15.
This is a deadline that was put to ByteDance and Microsoft by the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes deals for potential national security risks, according to the sources.
Banning TikTok would alienate many of its young users ahead of the U.S. presidential election in November, and would likely trigger a wave of legal challenges.
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