China-based TikTok’s parent company ByteDance has agreed to divest the US operations of TikTok completely.
Reportedly, this has been decided to save a deal with the White House, after U.S. President Donald is looking to ban the popular short-video app.
As ET’s reports, the Chinese social media giant, ByteDance was trying to keep a minority stake in the US business of TikTok, but sources said that White House had rejected this plan.
And therefore, under the new proposal, now ByteDance would take the complete exit and tech giant Microsoft would take over TikTok’s U.S. business.
Interestingly, some of its US-based investors may get a chance to take minority stakes in the business, the report suggested.
People familiar with this matter had said that under the new proposed deal, Microsoft will be in charge of protecting all US user data.
However, ByteDance still continuing to operate the rest of the global video app out of a European headquarters.
But lots of uncertainties still lie here like if the companies would share technology, such as through a licensing arrangement, or whether Microsoft would rebuild and operate the company.