All in all, TikTok has till September 15 to sign the dotted lines to sell its U.S. operations. Regarding the spread of the mobile application owned or developed by the Chinese companies, the president said that these Chinese applications continue to threaten the foreign policy, national security, and the economy of the US.
From a financial point of view, Twitter isn't in the position to buy a behemoth like TikTok as the Jack Dorsey-headed company has suffered a loss of $1.2 billion in the last quarter and a merger with TikTok could prove to be a costly affair.
This is where the above-mentioned transition period coveted by Microsoft might come in handy, as to ensure uninterrupted TikTok service, the United States company would potentially rely on ByteDance's code until it can be reviewed.
Analysts and bankers have said that TikTok's U.S. business could be worth anywhere from $20 billion to $50 billion, thanks to the company's user base of over 100 million customers in the United States, according to reports in Fortune.
Allegedly, ByteDance was not able to give out the announcement on possible London office until they are accurate that they'll receive the British government's support.
In keeping with a Friday New York Times report, a CIA evaluation discovered no proof that Chinese language intelligence businesses used TikTok to entry information from American customers. "If the government would not speak out in its favor, it would be very hard for TikTok to make the move".
Meanwhile, TikTok has vowed to take legal action to protect its rights and interests, with a National Public Radio report revealing that the app plans to file a federal lawsuit as soon as Tuesday to challenge President Trump's executive order as unconstitutional.
So far, the British government has been silent about the issue.
Johnson's spokesperson confirms that no decision has still yet finalized, saying that "it would be a commercial decision". It will argue that the president's action is unconstitutional because it failed to give the company a chance to respond and that the USA government's national-security justification for the order is baseless, according the report.
A deal would be in line with Microsoft's stance toward China where the firm has a sizeable presence - unlike fellow United States tech heavyweights such as Facebook Inc and Alphabet Inc's Google which appear to have given up on China's consumer-facing market with its miscellany of government strictures.
TikTok is in a dire situation, not only in the USA but is facing trouble in one of the major economies like India as well.
TikTok also reportedly censors content that the Chinese Communist Party deems politically sensitive, such as content concerning protests in Hong Kong and China's treatment of Uyghurs and other Muslim minorities.
A Microsoft logo is seen next to a cloud in Los Angeles, California, U.S. June 14, 2016. Will it also be the same as the United Kingdom?