August 01 : TikTok, the Chinese-owned video app, which has been banned in India recently, is also facing scrutiny from the Donald Trump administration. As President Donald Trump considers taking action against TikTok, and bans the app in the US, the company is at the verge of being forced to cut itself off its parent company, ByteDance.
Taking advantage of the current situation in the US, Microsoft is in talks with ByteDance to acquire TikTok's US operations, reports Reuters. If everything goes well, and Microsoft succeeds in acquiring TikTok’s US operations, it will help in the company’s advertising business. Recently, Microsoft revealed that its search ads sales grew by 1 percent to $7.7 billion over last year. However, the growth becomes flat when it excludes fees that the company pays to its partner websites and apps.
Meanwhile, Trump would take the final call on TikTok after a review by the Committee on Foreign Investment in the United States (CFIUS), a government panel that has been examining ByteDance’s 2017 purchase of Musical.ly. It is reported that the app has morphed to become TikTok.
It is also reported that the committee is set to ask ByteDance to divest TikTok, while the government is in negotiations over the terms of the separation. White House believes that TikTok may pose a national security threat because of its Chinese ownership. Earlier, Fox Business Network had reported Microsoft’s interest in buying the app.
Meanwhile, TikTok has denied accusations that it supplies user data to China even though ByteDance is based there. ByteDance has also made organizational changes to satisfy US authorities as TikTok now has a US-based chief executive officer.