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TikTok Sale In Jeopardy After Algorithm Scrutiny

The purchase of viral video sharing app, TikTok, appears to be in jeopardy, following new Chinese regulation on the export of artificial intelligence tech to an overseas buyer such as Microsoft.

According to a Wall Street Journal report, deal participants are trying to gauge new requirements from the Chinese government following regulatory changes, reducing the likelihood of quick acquisition process.

New regulation has thrown caution as to whether TikTok’s algorithms will be included in the Chinese-owned company’s sale to an US buyer.

The news comes after the Trump administration banned the use of TikTok over cybersecurity risks to the Chinese government, permitting its sale to an American company.

Both Microsoft and Oracle have reportedly been in talks of acquiring most of TikTok’s operations including its US and Australian subsidiaries.

The deal is dubbed to potentially be one of Microsoft’s largest deals in the last decade.

The WSJ reports that TikTok owner, ByteDance, is requesting a sale price of US$30 billion, notably less than the US$50 billion initial reports suggested the company was worth.

TikTok boasts over one hundred million users globally, with the app-maker continually rejecting allegations of security risks stemming from its Chinese owner.

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