August 1, 2020 - 13:51 AMT
PanARMENIAN.Net - TikTok, the Chinese-owned video app that has been under scrutiny from the Trump administration, is in talks to sell itself to Microsoft and other companies as U.S. President Donald Trump weighs harsh actions against the business, including forcing TikTok to divorce itself from its parent company, ByteDance, said people with knowledge of the discussions, The New York Times reports.
The powerful Committee on Foreign Investment in the United States, or Cfius, has been examining ByteDance’s 2017 purchase of Musical.ly, an app that eventually morphed to become TikTok. The committee has decided to order ByteDance to divest TikTok, and the government is engaged in negotiations over the terms of the separation, according to a person familiar with the administration’s plans, who spoke on the condition of anonymity. White House officials have said TikTok may pose a national security threat because of its Chinese ownership.
On Friday, Treasury Secretary Steven T. Mnuchin, who leads the committee, briefed the president on the divestment plan. But it remains unclear what the president will do, including whether the U.S. would apply a divestment order to all of TikTok’s American operations and whether its actions would affect the app’s global business as well.
Mr. Trump is weighing several other courses of action, including an executive order that could use the vast powers of the International Emergency Economic Powers Act to bar certain foreign apps from American app stores. The Trump administration has also considered whether to add TikTok’s parent to a so-called “entity list,” which would prevent it from purchasing American products and services without a special license, said people with knowledge of the matter. Discussions are expected to continue into this weekend.