Microsoft, Bytedance put TikTok talks on hold!

After Indian banned more than 50 Chinese apps last month, many other countries seemed concerned about these apps leaking their security data. Microsoft took notice of the matter and was exploring an acquisition of TikTok’s operations in the U.S. They believed that such a deal would provide the software company with a much needed popular social media platform. It would also help to eliminate the U.S. government’s doubts about TikTok leaking important security information. But Microsoft and Bytedance put TikTok talks on hold after President Trump spoke of banning the app.

Reasons behind the hold

Microsoft and Bytedance, however, put these talks on hold after President Trump said that he would oppose the deal. Even the White House has spoken of some ‘very serious national security concerns over TikTok. President Trump’s comments prompted TikTok to provide additional concessions, agreeing to provide around 10,000 jobs in the U.S. All these by the next three years, Dow Jones reports. However, it isn’t clear if these alterations will make President Trump go against his words.

Zhang Yiming, the founder of TikTok parent Bytedance Ltd., has also reportedly agreed to sell his stakes as part of any deal. He was already going to gain a minority stake when Microsoft, Bytedance put TikTok talks on hold. Prior to Trump’s remarks, the two parties believed to have sealed the deal by Monday.

White House’s stand

As per reports, White House has been involved in the discussion for weeks and had made it clear that the desired outcome for TikTok was to be “American-owned”. One of its spokespersons said, ” The administration has serious concerns over TikTok. We continue to evaluate future policy.”

TikTok is facing global lash as many countries are ordering strict restrictions on the app due to its Chinese roots. But if Microsoft successfully owns it, it will give a sense of relief to the TikTok users all over the world. Believing in the American superpower, many countries might also lift the ban on the app.

Future Expectations

Although Microsoft, Bytedance put TikTok talks on hold, the deal isn’t believed to be dead. Many executives are hopeful that the President will change his mind and allow the deal to proceed. Many believe that Trump might consider the transaction being structured his way, and TikTok might successfully be owned by America. As of now, the two parties are trying to get the White House’s clarity on the situation of the app. They are even enquiring if it wants to perform a separate action that might harm the app’s future in the U.S.

Going by Trump’s words, the app is most likely to get banned in the U.S.  His exact words in this regard were, “Well, I have that authority.” So, TikTok’s future is pretty dark it seems.

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