HomeWinBuzzer NewsMicrosoft Denied TikTok Purchase Due to Security Risk Jibe

Microsoft Denied TikTok Purchase Due to Security Risk Jibe

Chinese company stopped Microsoft buying parts of TikTok because the company said the app posed a security risk.


Yesterday, was taken out of the running to purchase 's operations in the United States. According to the company, TikTok parent pulled the plug at the last minute. Despite being the front-runner, it seems Microsoft's bid fell apart because the company criticized ByteDance.

According to a report in Reuters, Microsoft deeming TikTok to be a security risk broke the deal. ByteDance CEO Zhang Yiming was upset by Redmond's stance.

Microsoft registered its interest in the company back in August. The interest came following President Trump's decision to ban TikTok from the United States. An executive order signed last month stops ByteDance from handling any transactions in the United States.

In fact, the company was meeting with ByteDance before Trump's order, going as far as to sign a nonbinding agreement. Last month, Walmart and Microsoft reportedly joined forces on a joint effort to claim TikTok operations in the United States.

No Deal

However, it now seems Microsoft was attempting to walk a line between acquiring TikTok and appeasing lawmakers. According to the company's proposal to Trump, it would take TikTok and fix .

ByteDance has long denied any such security problems in the app and took offence to Microsoft. Source speaking to Reuters say “In arguing for its bid with the Trump administration and US lawmakers, Microsoft upset Zhang, because it referred to TikTok as a security risk it could fix …”

Those sources add Microsoft was willing to pay $20 billion for TikTok's US operations. Instead, ByteDance took another deal, arguably one that serves its interests better. is now going to handle TikTok in the US, but only as a partner and not an owner.

Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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