China’s ByteDance has agreed to divest its TikTok operations in the US, according to a report in Reuters. Under the deal, Microsoft would take over stewardship of the knowledge of U.S.-based customers. The deal permits one other firm in addition to Microsoft to function TikTok in the United States. This would allow the service to proceed to function in the United States, sidestepping the alleged government order threatened by President Trump.
Allegedly, ByteDance had beforehand sought a deal that may allow the firm to retain a minority stake in the firm. That plan was apparently just lately deserted after the White House rejected the proposal.
Under this new deal, Microsoft could be in cost of defending U.S.-based customers’ knowledge, and one other U.S.-based firm could be allowed to function TikTok .
It’s unclear if this deal could be sufficient to allow TikTok to proceed to function inside the United States.
Microsoft and the White House didn’t reply to a request for remark.
This information comes hours after President Trump informed reporters that he was going to signal an government order banning the Chinese-owned app from working inside the United States. In response, ByteDance issued the following assertion, which we initially reported here.
“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,” stated a TikTok spokesperson.