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

… the U.S. government, and specifically the President, in the loop. In addition to the U.S., the discussions include Microsoft potentially buying the service in Canada, Australia and New Zealand. Microsoft said it wants to own and operate the social media site in those markets. The software giant also isn’t ruling out the potential of inviting additional investors to participate as minority shareholders.

Microsoft emphasized that the discussions are preliminary, noting there is no certainty that the talks will result in a deal. But it does not appear the discussions will drag on. Microsoft said it will decide by Sept. 15 whether it will pursue a deal. Even then, there always remains the potential for other suitors to emerge.

Potential Headwinds to Gaining U.S. Approval

Despite Nadella’s conversation with Trump, some administration officials reportedly are wary of TikTok, including White House trade adviser Peter Navarro.

“Every time you sign up for TikTok, all your information is potentially going right back to the Chinese Communist Party,” Navarro told Fox News. “The Chinese military and the Chinese government, they can use this social these social media apps to steal your personal information, your business information and also the judge.”

CNBC’s Carl Quintanilla noted that Microsoft is perhaps the strongest candidate to win the administration’s trust. In addition to helping operate much of the government’s cloud infrastructure, the feds recently awarded Microsoft the Defense Department’s JEDI contract. The 10-year contract is now under review following a protest by losing bidder Amazon.

Ballmer noted that the government is going to scrutinize any acquisition of a company with foreign interests.

“Even on the enterprise business, there’s always issues of national sovereignty,” Ballmer said. “Where do you share and where do you store data and the like? This would be a continuation of the theme. And I think Microsoft’s got a real sophistication about that, born [with a] track record of having to work with governments, and understanding the government is part of the fabric.”