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Australian users part of multi-billion TikTok sale

Published: (Updated: ) in Australian News by .

Australian TikTok users will be part of a massive corporate deal between US tech giant Microsoft and Chinese ByteDance to buy the US operations of the popular TikTok social media app.

Australian TikTok users will be part of a massive corporate deal between US tech giant Microsoft and Chinese ByteDance to buy the US operations of the popular TikTok social media app.

The proposed deal comes after US President Donald Trump called for the app to be banned, citing security and privacy concerns for US users of TikTok.

In a statement released overnight, Microsoft confirmed it's CEO Satya Nadella had held discussions with Mr Trump about the purchase, including saying the acquisition would be "subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury."

READ MORE: Why parents should be wary of TikTok app

TikTok is under investigation over its use of user data and facing a possible US ban

The reference to the Treasury was confirmed by Mr Trump in his White House briefing saying any deal would include "a very substantial portion of that price is going to have to come into the Treasury of the United States."

Microsoft would be purchasing the service in the United States, New Zealand, Canada and Australia.

Addressing privacy concerns around the app, Microsoft said: "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."

Before completing the purchase, Microsoft will ensure all private user data can be transferred to the United States, and existing servers would have any user data deleted.

Microsoft CEO Satya Nadella

While no comment has been made by either party on the value of this purchase, it is likely to be substantial, given TikTok's user base in those countries.

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Compared with purchase of Instagram in 2012 for $1 Billion, and WhatsApp in 2014 for USD$19 billion (AUD$27 billion) - both by Facebook - it's expected to be a multi-billion dollar deal, perhaps in the tens of billions.

Source: 9News https://www.9news.com.au/technology/tiktok-news-microsoft-confirms-plans-tiktok-purchase-bytedance-includes-australian-users/d0649424-b6c2-4431-9198-66e2a4b1f9a1

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