(PatrioticPost.com)- President Donald Trump has laid out the terms under which his administration is happy for the sale of Chinese-owned social media app Tik Tok is to proceed. The president said that Microsoft must move forward with discussions with a view to purchasing the app by next month, and that as part of the deal, the United States must get a cut of the sale.
President Trump acknowledged a phone call between himself and the CEO of software company Microsoft, Satya Nadella, in which he explained the national security concerns relating to the app. Trump told journalists during a White House gathering that any company looking to purchase the website, whether it is Microsoft or another player, would need to address all cyber-security concerns his administration has. Failure to resolve those concerns would result in the app being banned in the United States.
“I set a date of around September 15th, at which point it’s going to be out of business in the United States,” President Trump said about the video sharing platform. “But if somebody else buys it, that will be interesting,” he added.
Negotiations between Microsoft and Bytedance, the parent company that owns Tik Tok, briefly broke down when the president suggested that he would ban the app in the United States. However, after speaking to the president directly, Microsoft reopened discussions with Bytedance about a potential takeover.
The negotiations are likely to be interesting, and despite some estimates putting the value of Tik Tok in the tens of billions of dollars, the fact that the app could soon be banned by the United States means that valuation could change very quickly. Microsoft is unlikely to pay a small sum to purchase the app, but equally, it’s unlikely to be top dollar.
President Trump also appears to have put in place a major stipulation in the deal, stating that the Department of the Treasury should receive “a lot of money” from any deal between Bytedance and a buyer. Microsoft alluded to this in a blog post that was published last weekend.
“Microsoft fully appreciates the importance of addressing the President’s concerns,” it reads. “It is committed to acquiring Tik Tok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.”
If Microsoft purchases Tik Tok, it will need to ensure that all data is held on American servers – or at least not Chinese ones. If the company is able to do that, then it means millions of Americans will be able to continue enjoying the app, and the United States Treasury gets a handy cash injection. During COVID, that’s a huge win!