Microsoft Confirms Talks to Buy TikTok Amid Trump’s Threats to Ban It

Microsoft confirmed on Sunday that it is considering the purchase of popular social media site TikTok in the United States. This comes as President Trump considers a Tiktok ban in the U.S.

In a statement issued on Microsoft’s corporate blog, the company said it will continue discussions with TikTok’s parent, ByteDance.

Reports of the negotiations surfaced Friday, when President Donald Trump said he might ban TIkTok in the U.S. After Microsoft CEO Satya Nadella spoke with Trump about the company’s intentions, the administration has reportedly blessed a possible deal.

Microsoft didn’t specify why it has interest in the social media site or how much it might pay for TikTok. Also, not evident is to what extent, if any, TikTok would impact Microsoft’s commercial and enterprise businesses and its partners.

Perhaps Microsoft is interested in TikTok for its gaming business, along the lines of its acquisition of Minecraft in 2014. Further, TikTok has unique and sophisticated algorithms that Microsoft might see having potential beyond just running the social media site.

Ballmer Weighs In

Former Microsoft CEO Steve Ballmer told CNBC Monday that TikTok could be an attractive opportunity for the right price. Ballmer, who is Microsoft’s largest shareholder, said he has no inside knowledge about the talks.

Steve Ballmer

“It’s important to remember, you have to keep trying new things in order to build new businesses,” Ballmer said. ”Microsoft’s legacy actually is in the consumer business and built in enterprise business. And I think it [could become] an important addition to Microsoft’s business model from a revenue perspective.”

While it is not unheard of, it is rare for Microsoft, or any large company, to confirm rumored deals. But given the president’s harsh tone about TikTok, perhaps Microsoft was looking to assuage concerns and prevent a ban. The company may have reached out to gauge what regulatory hurdles a deal might face and to put forth its case.

Because TikTok is based in China, Trump threatened the ban amid the two countries’ ongoing trade dispute. The U.S. has also cited evidence of companies in China gathering data and sharing information with its government. Amid those concerns, Trump had threatened to either issue an executive order or invoke emergency powers.

At least for now, it appears Nadella has persuaded Trump to hold off on banning the social media site.

“Microsoft fully appreciates the importance of addressing the president’s concerns,” according to the company. “It is committed to acquiring TikTok, subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.”

Security Risks Overblown?

According to TikTok, the security concerns are moot. The company stores U.S. data is stored in U.S. data centers, TikTok told NBC News. The company added that customer privacy is paramount. Microsoft said it would transfer all private data of TikTok’s American users to U.S. data centers, where it would remain.

“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,” the company said. “This new structure would build on the experience TikTok users currently love, while adding world-class security, privacy and digital safety protections. The operating model for the service would be built to ensure transparency to users as well as appropriate security oversight by governments in these countries.”

During its negotiations, Microsoft said it will keep …