White House OKs Microsoft’s pursuit of TikTok.
WASHINGTON >> President Donald Trump gave the go-ahead for Microsoft to pursue an acquisition of TikTok, in his first public comments about the popular Chinese-owned video app after he had threatened to ban it from the United States entirely.
Speaking at the White House on Monday, Trump said that TikTok would shut down on Sept. 15 unless Microsoft or another company purchased it, and that he had suggested in a call this weekend that the chief executive of Microsoft “go ahead” with the acquisition.
“It can’t be controlled for security reasons by China,” Trump said of TikTok, adding that he did not mind if Microsoft or another very secure, “very American” company bought it instead.
Trump said that such a purchase would funnel a large amount of money to China, and argued that the United States should receive money in return for letting the deal happen, without explaining how that would work.
“A very substantial portion of that price is going to have to come into the Treasury of the United States, because we’re making it possible for this deal to happen,” Trump said.
His comments indicated at least a temporary reprieve for TikTok, which has come under scrutiny in Washington for its Chinese ownership. Trump administration officials and lawmakers of both parties have argued that the app, which is known for dance videos and other fun viral clips, could pose a national security threat by potentially giving the Chinese government access to vast quantities of American user data.
Executives at TikTok have insisted that it does not take direction from ByteDance, its parent company in Beijing.
Microsoft declined to comment on Monday. TikTok said in a statement that it was “committed to continuing to bring joy to families and meaningful careers to those who create on our platform as we build TikTok for the long term. TikTok will be here for many years to come.”
A special government panel that examines national security threats, called the Committee on Foreign Investment in the United States, has extended its deadline by 45 days to allow Microsoft to explore the purchase, a person familiar with the matter said. The 45-day extension was first reported by Reuters.
Following months of deliberations, that panel had recommended that TikTok sell its assets to a U.S. company
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