In addition, he also gave a deadline of at least six weeks for an agreement with ByteDance, as the parent company, can be achieved.
“(TikTok) must be a US company. It must be owned here. We don’t want any security issues here,” the 74-year-old president stressed.
Video sharing applications are currently loved today, with the number of users around the world believed to reach one billion.
However, the application was in the spotlight in the US because it was allegedly used by the Chinese government as a means of gathering intelligence data.
Trump said he gave ByteDance time until mid-September to finalize an agreement with Microsoft.
“I set September 15, where they have to relinquish operations in the US,” he was quoted as saying AFP Monday (3/8/2020).
The Republican President explained, whatever the price agreed by the two companies, the government must get a share.
“The United States must get a large percentage because we have made (this agreement) happen,” said the husband of Melania.
He compared the request to that of a land owner who asked for a “down payment” from a prospective land tenant.
The practice is called illegal, including in New York, where the president built a real estate empire and made it a world tycoon.
“TikTok was a big success because some of the profits in this country. So I think this request is fair,” said Trump.
He said if a sale and purchase transaction took place, he asked Microsoft to provide a portion of the profits to the US Treasury.
“they (Microsoft) have absolutely no rights until we give them,” the former event driver claims The Apprentice the.
Sell or close
Pressure to sell TikTok AS operations, based in Los Angeles, has made management and ByteDance in a difficult position.
Trump made the application in the whirlwind of political and commercial rivalry between the “Uncle Sam” State and China.
US law enforcement is conducting an investigation related to the national security sector because the application collects large amounts of user information.
TikTok management is reportedly under legal ties to share it with the State of “Panda” if local authorities want it.
Also read: Microsoft Correct TikTok Acquisition Plan
For this reason, both the user database and the algorithm when gathering information make the application so valuable.
Even so, Trump’s maneuver by saying Washington must get a share of the purchase was also somewhat surprising.
If an agreement fails, the White House wants TikTok to be blocked and prohibited from operating in the superpower.
If it is truly achieved, investment analysts at Lightshed Partners said, it is very likely that creators will move to competitors.
“Applications that are likely to benefit from this moment are Snapchat, Facebook, Twitter, with Snapchat in first place,” they explained.
On Monday morning local time, the founder of ByteDance, Zhang Yiming, acknowledged the intense pressure exerted by the Trump administration.
In his letter to the staff, as reported by Chinese media, he announced “working in the pursuit of time” to achieve the best results.
“We are always committed to ensuring user security, as well as platform neutrality and transparency,” explained Zhang in his letter.
Even so, he also admitted his company was facing complex problems both due to geopolitics and external pressure.
He asserted that the company must face challenges from the US, stating it opened all the latest options.
Based on the report The Sun, one of the possibilities explored by TikTok is to move the company to England.