Trump approves potential Microsoft TikTok acquisition

On 03/08/2020, U.S. President Donald Trump indicated that Microsoft could pursue an acquisition of TikTok’s operations in the United States, reversing earlier statements that the app would be banned outright. The shift followed discussions between Microsoft CEO Satya Nadella and Trump regarding a potential deal involving TikTok’s parent company, ByteDance. Microsoft confirmed the same day that it was exploring a purchase of TikTok’s U.S. business, with talks also considering operations in Canada, Australia, and New Zealand. The announcement came after Trump had previously threatened to prohibit TikTok over national security concerns related to data handling and ownership by a Chinese company. Following the change in stance, the administration set a deadline for negotiations, giving Microsoft until mid-September 2020 to reach an agreement. Microsoft said any acquisition would include security reviews and restructuring of data storage, with U.S. user data to be held domestically. Microsoft stated it would ensure transparency and provide oversight mechanisms as part of the potential deal. The company also indicated it would explore minority investment participation from other American investors. Negotiations continued through August and September 2020, though the acquisition was never completed.