Microsoft Is in Talks to Buy ByteDance's TikTok in US As Donald Trump Pushes For Chinese App Ban: Report

New York, August 1: President Donald Trump will order China's ByteDance to sell its hit video app TikTok because of national-security concerns, according to reports published Friday. "We are looking at TikTok," Trump told reporters Friday at the White House. "We may be banning TikTok." Donald Trump Says US Will Ban TikTok, ‘Looking at a Lot of Alternatives’ for Chinese App.

Reports by Bloomberg News and the Wall Street Journal citing anonymous sources said the administration could soon announce a decision ordering ByteDance to divest its ownership in TikTok. TikTok to be Banned in US? Donald Trump Says 'It's Something We're Looking At' to Punish China.

There have been reports of US tech giants and financial firms being interested in buying or investing in TikTok. The New York Times, citing an unidentified source, reported Friday that Microsoft is in talks to buy TikTok. Microsoft did not immediately reply to a request for comment.

TikTok issued a statement Friday saying that, "While we do not comment on rumours or speculation, we are confident in the long-term success of TikTok."

ByteDance launched TikTok in 2017, then bought Musical.ly, a video service popular with teens in the US and Europe, and combined the two. A twin service, Douyin, is available for Chinese users.

TikTok's fun, goofy videos and ease of use has made it immensely popular, and US tech giants like Facebook and Snapchat see it as a competitive threat. It has said it has tens of millions of US users and hundreds of millions globally.

But its Chinese ownership has raised concerns about the censorship of videos, including those critical of the Chinese government, and the potential for sharing user data with Chinese officials.

TikTok maintains it doesn't censor videos based on topics sensitive to China and it would not give the Chinese government access to US user data even if asked. The company has hired a US CEO, a former top Disney executive, in an attempt to distance itself from its Chinese ownership.

US national-security officials have been reviewing the Musical.ly acquisition in recent months, while US armed forces have banned their employees from installing TikTok on government-issued phones.

These national-security worries parallel a broader US security crackdown on Chinese companies, including telecom providers Huawei and ZTE. The Trump administration has ordered that the US stop funding equipment from those providers in US networks. It has also tried to steer allies away from Huawei because of worries about the Chinese government's access to data, which the companies have denied it has.

The Trump administration has stepped in before to block or dissolve deals on national-security concerns, including stopping Singapore's Broadcom from its USD 117 billion bid for US chipmaker Qualcomm in 2018 in an effort to help retain US leadership in the telecom space. It also told China's Beijing Kunlun Tech Co. to sell off its 2016 purchase of gay dating app Grindr.

Other countries are also taking action against TikTok. India this month banned dozens of Chinese apps, including TikTok, citing privacy concerns, amid tensions between the countries. (AP)

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