China’s ByteDance has agreed to divest its U.S.-based TikTok operations, Under the contract, Microsoft will take over U.S.-based user data management. In addition to Microsoft, the agreement allows another company to run TikTok in the United States. This would allow the service to continue to operate in the United States, deflecting President Trump ‘s alleged executive order.
ByteDance allegedly had previously negotiated an arrangement that would allow the firm to maintain a minority interest in the company. The program was apparently discontinued recently after the proposal was rejected by the White House.
Under this new arrangement, Microsoft will be responsible for securing U.S. user data and allowing another U.S.-based business to run TikTok.
It’s uncertain if this offer will be appropriate to allow TikTok to continue to operate within the US.
Microsoft and the White House did not react to a comment request.
This news comes hours after President Trump told reporters he would just sign an executive order preventing the Chinese-owned company from operating within the U.S. ByteDance responded,
“100 million Americans come to TikTok for entertainment and connection, especially during the pandemic. We’ve hired nearly 1,000 people to our US team this year alone, and are proud to be hiring another 10,000 employees into great paying jobs across the US. Our $1 billion creator fund supports US creators who are building livelihoods from our platform. TikTok US user data is stored in the US, with strict controls on employee access. TikTok’s biggest investors come from the US. We are committed to protecting our users’ privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform.”
It is pertinent to mention here that on Saturday, United States (US) President Donald Trump said he will ban social media app TikTok from the country as American authorities have raised concerns the service could be a tool for Chinese intelligence.