Microsoft Corp has officially declared that it is in talks with China’s ByteDance to acquire the US. operations of short-video app TikTok.
The deal could re-shape the social media industry as Microsoft will become a major player in the social media space alongside Facebook Incorporated.
The proposed take-over would as well heighten the distorted US-China relations.
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The US based tech giant made the interest formal on Sunday following the reversal of ban threat on TikTok by the US president, Donald Trump.
Recall that Trump had on Friday said the country would ban Chinese-owned TikTok from the US.
This follows concerns over data collection by the music-video app which has seen over two billion downloads globally.
The two firms were however directed by Trump to reach an agreement within 42 days.
ByteDance in an internal memo to staff said the company’s founder and CEO Zhang Yiming said TikTok was in talks with an unnamed company.
ByteDance also disputed the position of the Committee on Foreign Investment in the United States that it must fully divest TikTok’s US. operations.