BEIJING (Reuters) - The US government has launched a security review of the takeover of the US-based social media application "Musical LW" by Beijing-based Payne Dance, a deal worth $ 1 billion, informed sources said.
The takeover was completed two years ago, but US lawmakers have just called for a security probe into Tech Talk weeks ago, worried that the Chinese company might censor politically sensitive content and questions about how personal data is stored.
Tech Talk has become the most popular app among American teens, as tensions between Washington and Beijing over trade and technology transfers are growing. The company said this year that about 60 percent of the 26.5 million active US users in the United States are between the ages of 16 and 24.
Reuters quoted sources who requested anonymity as saying the US Foreign Investment Committee had begun reviewing the music deal. The sources added that Tek Talk did not seek permission from the Investment Committee when it acquired Musical LW, which gives room for investigation now.
The investment committee is in talks with Tech Talk about what it might take to avoid stripping the company of the musical assets it acquired, it said.
"While we cannot comment on the ongoing regulatory processes, Tic Tok has made it clear that we have no higher priority than gaining the trust of users and regulators in the United States. Part of this effort involves working with Congress, and we are committed to that," the company spokesman said.
Senate Minority Leader Chuck Schumer and Senator Tom Coton last week asked for a national security investigation on Tik Tok in a letter to Joseph McGuire, acting director of national intelligence.