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(Reuters) – President Donald Trump has agreed to give China’s ByteDance 45 days to negotiate a sale of popular short-video app TikTok to Microsoft Corp (NASDAQ:MSFT), two people familiar with the matter said on Sunday.
U.S. officials have said TikTok under its Chinese parent poses a national risk because of the personal data it handles. Trump said on Friday he was planning to ban TikTok in the United States after dismissing the idea of a sale to Microsoft.
But following a discussion between Trump and Microsoft CEO Satya Nadella, the Redwood (NYSE:RWT), Washington-based company said in a statement that it would continue negotiations to acquire TikTok from ByteDance, and that it aimed to reach a deal by Sept. 15.
It was not immediately clear what changed Trump’s mind. Several prominent Republican lawmakers put out statements in the last two days urging him to back a sale of TikTok to Microsoft.
The negotiations between ByteDance and Microsoft will be overseen by the Committee on Foreign Investment in the United States, a U.S. government panel that has the right to block any agreement, according to the sources, who requested anonymity ahead of a White House announcement.
“Microsoft fully appreciates the importance of addressing the President’s concerns. 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,” Microsoft said in a statement.
ByteDance and the White House did not immediately respond to requests for comment.
Under the proposed deal, Microsoft said it would take over TikTok’s operations in the United States, Canada, Australia and New Zealand. It said it would ensure that all private data of TikTok’s American users is transferred to and remains in the United States.
Microsoft may invite other American investors to acquire minority stakes in TikTok, the company added. About 70% of ByteDance investors come from the United States.
