The Microsoft, TikTok deal is coming to closure. Microsoft reportedly plans to seal the deal in the next three weeks for a multi-million dollar payout.
According to reports, Microsoft could pay as much as $30 million to take control of TikTok’s U.S., Canada, New Zealand, and Australia operations. As CNBC reports, Microsoft says that if it goes through with the deal, it will move all of TikTok’s operating code out of China within one year. This move will involve a labor-intensive migration of up to 15 million lines of artificial-intelligence laden code. The code will have to be digitally transferred from serves that are currently in China. Likely, the servers will be relocated to the U.S.
Time is ticking for the deal closure
ByteDance, the current owner of TikTok, has until September 15 to close the deal with Microsoft. The reason why ByteDance has to sell some of its operations in the US is due to an order imposed by the Trump administration’s Committee on Foreign Investment in the United States (CFIUS). The agency determined that ByteDance’s ownership poses a threat to national security.
What will happen if ByteDance doesn’t meet the deadline? TikTok could be banned in the US. CNN reports, Donald Trump has intentions to ban the app, regardless if it found a new owner or not. However, reports claim he was talked down by Sen. Lindsey Graham. Additional sources claim Trump wanted to ban TikTok due to the rising trade tensions between the US and China.
As the deal between Microsoft and ByteDance is settled, we will update you on how it unfolds. Additionally, as Microsoft and ByteDance try to reach a deal, Instagram has released its TikTok competitor, Reels, to capitalize on the moment.