Why Is Microsoft Interested In Buying TikTok
Microsoft wants to buy TikTok. Donald Trump is not happy with this. Donald Trump is just fine with it. Donald Trump has given his disguised blessing. However, Trump has set a deadline for the deal.
Okay, on which side of the bed you wake up and on which day it happens, intersections of politics and technology are undoubtedly causing more confusion that it does well.
At the time of writing this, it seems that the political spread in the US is fine as Microsoft is attempting to push through its interest in acquiring Tickcock.
Operations at least for parts of the world including the US. Tech works well for the veteran, as Tiktok is doing everything possible to remain exclusively present and active in the US, where it has a large and active user base. But the question still remains as to why Microsoft wants to buy TikTok?
The way things have happened in the last few years, Microsoft has focused on the enterprise space. Part Consumer Plays, including the Surface Computing Device line-up and revamped Microsoft 365 subscriptions, ultimately, plug in very well into the enterprise space.
But Microsoft, for most intentions and purposes, does not actually do consumer products. Except maybe the Microsoft Xbox ecosystem. Let us look at some of Microsoft's consumer products that are no longer around. Windows Phone, Groove Music, Microsoft Band Fitness Accessory are some examples.
Cortana, a virtual assistant, is going down that path - apps for Android and iOS will close next year, with Cortana having access to the Harman Kardon Invoke Smart Speakers and first-generation Microsoft Surface headphones. Instead, Cortana is getting deeper integration between the Outlook email app and the Teams video meeting app, which has enterprise value. Gives you an understanding of the demographic of users Microsoft is largely designing products and services.
At this time, it is believed that Microsoft intends to acquire TikTok's operations for the US, Canada, Australia, and New Zealand. According to the report, Wedbush analyst Dan Ives wrote to investors earlier this week, 'This is a unique deal worth a decade with the price tag' CNN. It is believed that Tiktok is valued at $ 50 billion.
One of the primary reasons Microsoft believes that TicketLock is an investment worth it is that it will acquire a readymade product in the social media space.
The closest Microsoft to that location right now is with LinkedIn, a professional network. Still, this is no match for Facebook, Facebook-owned Instagram, and even Twitter and Snapchat.
The LinkedIn acquisition may have been a clue - Microsoft did not change the branding or the foundation of the network that made it successful in the operating space. If the company does the same with TickTock, as do the branding and discard apps, it can only succeed because of the numbers that drive Tikok engagement on a daily basis.
The only change will be that user data from US-based accounts will be saved on servers in the US. As a consumer, this will not make any difference, except that you may have to accept the new terms and conditions at some point after the acquisition of the new Microsoft.
Second, it is the oil of the modern world. Data. It all started with data, and there are apprehensions that US users' data was ending with the Chinese government. Eventually, TikTok is owned by the Chinese company ByteDance.
In China, the National Intelligence Law 2017 regulates all technology companies that are based in China or subject to Chinese ownership. The law obligates all businesses to share any and all information that the Chinese government may demand. This is something that is worrying governments around the world including India.
Microsoft acknowledges the importance of the data it will get from TikTok. 'Among other measures, Microsoft will ensure that all personal data of American users of Tiktok is transferred to and remains in the United States. For any such data currently stored or backed-up outside the United States, Microsoft will ensure that this data is removed from servers outside the country after it is transferred, ”an official statement from the company Confirming the talks said.
As of January, TikTok had seen 800 million users worldwide. The app received over 49 million downloads in the US last year alone. On average, TikTok users in the US open the app 8 times a day, with each session around 5 minutes - which is about 40 minutes of app usage a day.
It is like ready-made platforms that are not so readily available for technology companies to acquire. Microsoft will eventually have a product to take Facebook along.
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If you look at the list of countries in which Microsoft wants to acquire TikTok, all of them are English speakers. When it comes to moderating content to deal with the complexities of localization, limited challenges will mean.
TikTok is as consumer-focused as it gets. In fact, it gives Microsoft a head-start in trying to understand a smaller demographic of users, which will consume more services and applications in the coming years.
When Microsoft lagged behind the previous generation with much delay in battling with Google, Apple and Facebook, when it came to platforms such as Windows Phone, Outlook Mail, Bing Search and social networks in general, it A must-have advantage over rival large tech companies when it makes sense to these users that it will adopt with TikTok.
Microsoft is also in a safe place as far as regulators are concerned. While Facebook, Google, Apple and Amazon are all under much scrutiny by the US Congress, Microsoft has not yet been dragged into it due to its business and enterprise focus.
Remember, TikTok is a social media platform that was concerned about Facebook for some time. Popularity, instant video formats, and products are some of the concerns for Facebook, which is trying the same with Instagram reels. Microsoft can get behind this, TikTok can logically stand to benefit. The key for Microsoft would be to leave TikTok, and not make it a Microsoft product.