(Reuters) — According to 3 people familiar with the matter, Donald Trump gives Microsoft 45 days to secure a deal in order to allow them for negotiating the acquisition of TikTok.
Donald Trump had brushed the idea of a sale to Microsoft aside on Friday. He said “It is not the deal that you have been hearing about, that they are going to buy and sell, and this and that. And Microsoft and another one. We’re not an M&A company.” However, after their discussion with Microsoft CEO Satya Nadella, in their statement, Microsoft says they continue discussions on potential TikTok purchases in the United States, Canada, Australia, and New Zealand.
According to the sources, the negotiations between ByteDance and Microsoft will be overseen by CFIUS, a U.S. government panel that has the right to block any agreement.
“Among other measures, Microsoft would ensure that all private data of TikTok’s American users is transferred to and remains in the United States. To the extent that any such data is currently stored or backed-up outside the United States, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred.
Microsoft appreciates the U.S. Government’s and President Trump’s personal involvement as it continues to develop strong security protections for the country.” Microsoft said in a statement.
Microsoft may invite other American investors to participate on a minority basis in this purchase.
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.