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Multiple media outlets reported Friday that the president was considering signing an executive order requiring ByteDance to divest the USA portion of TikTok. According to Reuters, potential investors have valued it at $50 billion, so this will not be a cheap acquisition - but we're confident the company that's now valued at over a trillion dollars can afford it.
However, there have been growing fears the company could become a front for Chinese spying efforts. The plan allows for a USA company other than Microsoft to take over TikTok in the United States, the sources added.
ByteDance was previously seeking to keep a minority stake in the United States business of TikTok, which the White House had rejected.
The Wall Street Journal on Friday reported that Microsoft, headed by Indian-American Satya Nadella, is in advanced talks to acquire the United States operations of TikTok.
Microsoft and other US companies, in recent days, reportedly have been looking to purchase the usa operations of TikTok.
However, this still remains unclear. Ordering the divestment of TikTok would not be the first time the White House has taken action over such concerns.
Trump on Friday said he intends to sign an executive order or use an emergency economic power on Saturday banning the app from the U.S. (Jerod Harris/Getty Images) President Donald Trump walks outside the White House in Washington on July 31, 2020. "We are not an M&A [mergers and acquisitions] country". A big part of the reason why that is the case has to do with the fact that this would be a loophole allowing the app to still get an American audience and profit from its foray into that market even if it does end up getting banned. It has cited concerns over the potential for USA user data to be sent to China to be used by the Chinese governement.
Reuters reported on Friday, citing a source familiar with the matter, that Microsoft is in exploratory deal talks as the United States government prepares to force China-based ByteDance to divest its video app TikTok over data security concerns.
The Chinese Community Party rules China. It was also banned in India for one week in 2019, under claims the app encouraged the distribution of pornography, as well as risked exposing children to sexual predators. We appreciate the support, and we're here for the long run. TikTok has repeatedly insisted it would never provide any data if the Chinese government asked.
"The logic of banning them may well be extended to other [Chinese] apps like WeChat".
"Americans should be concerned", National Security Advisor Robert C. O'Brien said in June.