Microsoft confirmed that it will wrap up negotiations with the company no later than Sept. 15 and "during this process, Microsoft looks forward to continuing dialogue with the United States Government, including the President."
The company said that it decided to continue negotiations following a conversation between Microsoft CEO Satya Nadella and President Donald Trump, who tweeted last week that he would seek to ban the app in the U.S.
The Treasury Department's Committee on Foreign Investment in the United States (CFIUS), which reviews foreign deals for potential security risks, gave Microsoft and ByteDance 45 days to reach a deal, Reuters reported.
Microsoft is interested in purchasing TikTok's operations in the U.S., Canada, Australia and New Zealand, and the company said it may invite other American investors to join as minority investors.
The Trump administration has upped its pressure on the Chinese government in recent months and threatened to ban TikTok. Trump and U.S. legislators have expressed concern that American users' data would not be secure in the hands of the Chinese-owned company. But Microsoft says that it will provide the data security Americans have come to know.
"Among other measures, Microsoft would ensure that all private data of TikTok’s American users is transferred to and remains in the United States. To the extent that any such data is currently stored or backed-up outside the United States, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred," Microsoft said in its statement.
Microsoft shares were up 2.7% to $210.50 in premarket trading on Monday.