TikTok Under National Security Review From U.S. Government

Beijing-based ByteDance’s $1 billion acquisition of Musical.ly is being investigated, two years after the deal closed

The U.S. government has opened a national security review into ByteDance, the Chinese parent company of popular short-form video app TikTok,  according to multiple reports on Friday.

Reuters was the first outlet to report the news.

The review is focused on ByteDance’s billion-dollar acquisition of Musical.ly, a U.S. app that let users create karaoke videos, in 2017, according to Reuters. Musical.ly had about 60 million users at the time, according to The New York Times.

The Committee on Foreign Investment in the United States is investigating the deal on “potential national security risks,” Reuters reported. The companies did not seek regulatory clearance from the committee in 2017, allowing the committee to now go back and review the deal.

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