Exclusive: Trump gives Microsoft 45 days to clinch TikTok deal

[snoop1130]

Exclusive: Trump gives Microsoft 45 days to clinch TikTok deal

By Greg Roumeliotis, Echo Wang and Matt Spetalnick

 

FILE PHOTO: China and U.S. flags are seen near a TikTok logo in this illustration picture taken July 16, 2020. REUTERS/Florence Lo/Illustration/File Photo

 

NEW YORK/WASHINGTON (Reuters) - President Donald Trump only agreed to allow Microsoft Corp 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 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 said on Friday 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 proposed acquisition of TikTok, which boasts 100 millions U.S. users, would offer Microsoft a rare opportunity to become a major competitor to social media giants such as Facebook Inc and Snap Inc. Microsoft also owns professional social media network LinkedIn.

 

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, Washington-based company said in a statement on Sunday 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.

 

Trump changed his mind following pressure from some of his advisers and many in his Republican party, one of the sources said. 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. Several prominent Republican lawmakers put out statements in the last two days urging Trump to back a sale of TikTok to Microsoft.

 

"A win-win in the making," Republican Senator Lindsey Graham tweeted in response to Trump's new stance on Sunday.

 

The negotiations between ByteDance and Microsoft will be overseen by CFIUS, a U.S. government panel that has the right to block any agreement, according to the sources, who requested anonymity ahead of a White House announcement. Microsoft cautioned in its statement that there is no certainty a deal will be reached.

 

"Microsoft fully appreciates the importance of addressing the President's concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury," Microsoft said in a statement.

 

ByteDance and the White House did not immediately respond to requests for comment on the Microsoft talks. In a statement issued late on Sunday that did not mention TikTok, ByteDance said it faced "complex and unimaginable difficulties" in going global.

 

As relations between the United States and China deteriorate over trade, Hong Kong's autonomy, cyber security and the spread of the novel coronavirus, TikTok has emerged as a flashpoint in the dispute between the world's two largest economies.

 

State-backed newspaper China Daily on Monday called ByteDance the victim of a "witch hunt" from the United States, and said Washington had not provided evidence to support its allegation that TikTok posed a threat to U.S. national security.

 

Under the proposed deal, Microsoft said it would take over TikTok's operations in the United States, Canada, Australia and New Zealand. It said it would ensure that all private data of TikTok's American users is transferred to and remains in the United States.

 

Microsoft may invite other American investors to acquire minority stakes in TikTok, the company added. About 70% of the outside capital ByteDance has raised has come from the United States.

 

It is not clear how much Microsoft could pay for TikTok. Reuters reported last week that ByteDance's valuation expectations for the app exceeded $50 billion, although U.S. pressure to divest it could lower that price tag.

 

A key issue in the negotiations will be separating TikTok's technology from ByteDance's infrastructure and access, to alleviate U.S. concerns about the integrity of personal data. ByteDance owns a Chinese short video app called Douyin that was based on the same code used for TikTok.

 

One idea under consideration is to give Microsoft and ByteDance a transition period to develop technology for TikTok that will be completely separate from ByteDance, one of the sources said.

 

Microsoft said it did not intend to provide further updates until there was a definitive outcome in the negotiations.

 

APP SCRUTINY

 

The United States has been increasingly scrutinizing app developers over the personal data they handle, especially if some of it involves U.S. military or intelligence personnel. Ordering the divestment of TikTok would not be the first time the White House has taken action over such concerns.

 

Earlier this year, Chinese gaming company Beijing Kunlun Tech Co Ltd sold Grindr LLC, a popular gay dating app it bought in 2016, for $620 million after being ordered by CFIUS to divest.

 

In 2018, CFIUS forced China's Ant Financial to scrap plans to buy MoneyGram International Inc over concerns about the safety of data that could identify U.S. citizens.

 

ByteDance was valued at as much as $140 billion earlier this year when one of its shareholders, Cheetah Mobile, sold a small stake in a private deal, Reuters has reported. The start-up's investors include Japan's SoftBank Group Corp.

 

-- © Copyright Reuters 2020-08-03

 

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[Katipo]

I have to agree with Trump on this one. TikTok is very invasive malware, even when compared to the likes of Facebook.

[Bluespunk]

22 minutes ago, snoop1130 said:

Trump said on Friday he was planning to ban TikTok amid concerns that its Chinese ownership represents a national security risk because of the personal data it handles.

Then he found out he probably couldn’t make good on this threat (as he found out with Twitter), hence this change of course. 

Edited August 3, 2020 by Bluespunk

[JohnnyNJoy]

I don't trust that app one bit, but I don't think Trump can outright ban it. I know his main reason is China.

 

I do find it weird that MS wants to buy tiktok though. 

[Cryingdick]

23 minutes ago, JohnnyNJoy said:

I don't trust that app one bit, but I don't think Trump can outright ban it. I know his main reason is China.

 

I do find it weird that MS wants to buy tiktok though. 

This is a great buy for Microsoft. This gives them a new stream of revenue from ads. It also gets them a new younger customer base. This puts MSFT in Facebook's arena and FB prints money. This is a win on every level for a big tech company looking for additional revenue streams. The fact it is laid at their feet by the POTUS is ideal. Also MSFT is probably the only big tech company that could buy this without the anti-trust dogs coming out. The company was valued at $50 billion and word is MSFT might get at as low as $5 billion. They have 2 billion downloads of the app worldwide.

 

My shares are getting a very nice bump from this.

Edited August 3, 2020 by Cryingdick

[mrfill]

12 hours ago, Katipo said:

I have to agree with Trump on this one. TikTok is very invasive malware, even when compared to the likes of Facebook.

A perfect fit for Microsoft then

[mtls2005]

Sheesh, instead of adressing the Covid crisis, the economic crisis or the unemployment crisis, our president is doing M & A, and requesting his "fee".

 

what the actual _ _ _ _?

 

 

 

[mrfill]

10 hours ago, Cryingdick said:

This is a great buy for Microsoft. This gives them a new stream of revenue from ads. It also gets them a new younger customer base. This puts MSFT in Facebook's arena and FB prints money. This is a win on every level for a big tech company looking for additional revenue streams. The fact it is laid at their feet by the POTUS is ideal. Also MSFT is probably the only big tech company that could buy this without the anti-trust dogs coming out. The company was valued at $50 billion and word is MSFT might get at as low as $5 billion. They have 2 billion downloads of the app worldwide.

 

My shares are getting a very nice bump from this.

Will it be as successful as the Nokia acquisition or Windows Phone OS or Zune or Skype?

They sure know how to pick 'em...

[Cryingdick]

8 minutes ago, mrfill said:

Will it be as successful as the Nokia acquisition or Windows Phone OS or Zune or Skype?

They sure know how to pick 'em...

 

You do realize MSFT is one of only a handful of companies that are at a market cap of over a trillion dollars right? How about Office 360, Azure, teams? 

 

Dan Ives who is a tech analyst who knows his stuff said that this acquisition will most likely add another $100 billion to their cap. I don't often pay that much attention to what an analyst says except for this guy has been spot on for the years I have followed him. 

 

 

Edited August 4, 2020 by Cryingdick

[Chomper Higgot]

11 hours ago, Cryingdick said:

This is a great buy for Microsoft. This gives them a new stream of revenue from ads. It also gets them a new younger customer base. This puts MSFT in Facebook's arena and FB prints money. This is a win on every level for a big tech company looking for additional revenue streams. The fact it is laid at their feet by the POTUS is ideal. Also MSFT is probably the only big tech company that could buy this without the anti-trust dogs coming out. The company was valued at $50 billion and word is MSFT might get at as low as $5 billion. They have 2 billion downloads of the app worldwide.

 

My shares are getting a very nice bump from this.

So let me get this right, you are quite OK with the POTUS meddling in the markets so long as you make money out of it.

[Cryingdick]

18 minutes ago, Chomper Higgot said:

So let me get this right, you are quite OK with the POTUS meddling in the markets so long as you make money out of it.

 

Don't hate the player hate the game. I merely maneuver around obstacles. It's actually the dems at the state level making me the most money. They have killed off all the small players and sent that money right into the big tech companies I invest in. So if you want to play the blame game took a look at the dems.

 

They have made the richest companies on the planet richer by a lot. I don't invest my politics I simply maneuver the ship however I think it works out best. I could really care less if there is a moral stance about Trump and Microsoft. Much like I don't care that Microsoft is a very liberal woke company. 

 

It's just business.

Edited August 4, 2020 by Cryingdick

[stevenl]

46 minutes ago, Cryingdick said:

 

Don't hate the player hate the game. I merely maneuver around obstacles. It's actually the dems at the state level making me the most money. They have killed off all the small players and sent that money right into the big tech companies I invest in. So if you want to play the blame game took a look at the dems.

 

They have made the richest companies on the planet richer by a lot. I don't invest my politics I simply maneuver the ship however I think it works out best. I could really care less if there is a moral stance about Trump and Microsoft. Much like I don't care that Microsoft is a very liberal woke company. 

 

It's just business.

The Dems at state level in WV are making you money. Sounds strange, would you mind explaining?

[Srikcir]

41 minutes ago, Cryingdick said:

 

Don't hate the player hate the game. I merely maneuver around obstacles. It's actually the dems at the state level making me the most money. They have killed off all the small players and sent that money right into the big tech companies I invest in. So if you want to play the blame game took a look at the dems.

 

They have made the richest companies on the planet richer by a lot. I don't invest my politics I simply maneuver the ship however I think it works out best. I could really care less if there is a moral stance about Trump and Microsoft. Much like I don't care that Microsoft is a very liberal woke company. 

 

It's just business.

It seems to me that with Trump shepherding MS' takeover of TikTok to the exclusion of any other US company including his own specific timetable for the takeover and personal intervention in negotiations potentially violates antitrust laws. 

[ardsong]

Sofar there has not been one report that TikTok is a thread, other than the Trump card thread.

A french cybersecurity specialist is now in the process of stripping the TikTok code in order to find out what data is transfered (yes tiktok transfers data; same like any other App on your phone does!)

He tries to find out what data, when it is gathered and where it is send to.

Till now he has not found any indication that TikTok transfers data to China, nor that it transfers other data than all the other Apps.

 

so the so called "american security threat" till now is just fake news, like most news that comes from the Trump.

will try to keep you informed on the progress of more detailed code inspections on TikTok.

[welovesundaysatspace]

Impossible timeline. He doesn’t know what he’s talking about (as usual). 

[Dumbastheycome]

So maybe Microsoft convinced Trump to "allow" them to buy TikTok because it  would mean  all this  "data" would  be kept in the US and "available"  to Trump via security  requests?  Mr Trump...you wanna get those nasty lil teens that laugh at  you? We  can do it  for you  !

[Toany]

either China harvests you data or America.  Not much difference.  Unless your Amreican

Edited August 4, 2020 by Toany

[Bender Rodriguez]

oh no, more influence power to bill, just what the world needs

[Eric Loh]

42 minutes ago, Toany said:

either China harvests you data or America.  Not much difference.  Unless your Amreican

America can also harvest data from Canada, New Zealand and Australia and possibly India if this Microsoft deal goes through. Seem only America can infringe other countries 'national security'. 

[Cryingdick]

1 hour ago, stevenl said:

The Dems at state level in WV are making you money. Sounds strange, would you mind explaining?

Sure, by declaring a handful of companies essential, my stock in those companies have spiked. Walmart, Amazon, Home Depot, come to mind. There are only so many places that are allowed to be open.

 

AMZN has been "vaccinating" it's entire chain and has been running the show around therefor the past 6 months.So there Nisan example out of many. I will even give full names not tickers, Crowdstrike, Chipotle, Mcdondalds Amazon, Adobe, Salesforce, Zoom, etc.

 

There has been a ton of money made lately. The stock market is strong in a weak economy, why? Are you going to go out and buy German Bunds?

 

The stock market is divorced from the American economy and bifurcated between value stocks/traps with tech winning. 

 

So closing all local restaurants in places like WV put the businesses with wide supply chains and excellent logistics ahead of the curve by around 5 years.

Edited August 4, 2020 by Cryingdick

[Cryingdick]

Letting them buy stock and open and shut them back down was a double blow. It is a huge investment to be able to open. This is why Amazon is up 70% 

Edited August 4, 2020 by Cryingdick

[Cryingdick]

1 hour ago, Dumbastheycome said:

So maybe Microsoft convinced Trump to "allow" them to buy TikTok because it  would mean  all this  "data" would  be kept in the US and "available"  to Trump via security  requests?  Mr Trump...you wanna get those nasty lil teens that laugh at  you? We  can do it  for you  !

tech companies hate Trump but love his policies.

[Dumbastheycome]

7 minutes ago, Cryingdick said:

tech companies hate Trump but love his policies.

Hmmmmm.

[The Barmbeker]

So glad, he has his priorities right!

[Dumbastheycome]

10 minutes ago, Cryingdick said:

tech companies hate Trump but love his policies.

I think that all the major  Corporates love Trump's policies because they have/are so successfully  manipulating his egotistic self deception into providing them with the capacity  to overwhelm established  barriers of protection  to the public in general. The  final push for Corporate rule and ultimately the chaotic reaction that will come from it.

"Make hay while the summer sun shines" ignores the fact a winter comes not long after !

[Dumbastheycome]

7 minutes ago, The Barmbeker said:

So glad, he has his priorities right!

"His" priorities are ?

[Eric Loh]

16 minutes ago, Cryingdick said:

tech companies hate Trump but love his policies.

Every corporations love tax cuts and perhaps soon payroll-tax cut. 

[stevenl]

43 minutes ago, Cryingdick said:

Sure, by declaring a handful of companies essential, my stock in those companies have spiked. Walmart, Amazon, Home Depot, come to mind. There are only so many places that are allowed to be open.

 

AMZN has been "vaccinating" it's entire chain and has been running the show around therefor the past 6 months.So there Nisan example out of many. I will even give full names not tickers, Crowdstrike, Chipotle, Mcdondalds Amazon, Adobe, Salesforce, Zoom, etc.

 

There has been a ton of money made lately. The stock market is strong in a weak economy, why? Are you going to go out and buy German Bunds?

 

The stock market is divorced from the American economy and bifurcated between value stocks/traps with tech winning. 

 

So closing all local restaurants in places like WV put the businesses with wide supply chains and excellent logistics ahead of the curve by around 5 years.

Thanks.

 

So it was not really the dems in WV.

[The Barmbeker]

34 minutes ago, Dumbastheycome said:

"His" priorities are ?

NOT focussing on COVID or the upcoming eviction desaster or to help the victims of the biggest econiomical crisis in the history of economical crisis...to name but a few!

[Bluespunk]

Gangsterism at its worst

 

Donald Trump: US Treasury should get cut of TikTok deal https://www.bbc.co.uk/news/business-53633315