Is Microsoft planning to buy TikTok? Well, the answer is yes but there is a huge amount of confusion regarding the topic since Financial Times announced this deal earlier this week. But the amazing fact about the news is Microsoft is not just trying to buy TikTok but it aims to purchase all the operations across the globe.
Microsoft had stated about the talks and negotiations with ByteDance, the Chinese owner of the TikTok app. However, Microsoft is currently chasing the TikTok operations of New Zealand, Canada, Australia and Us. Will they be successful in this acquisition? Let’s know about it.
Why Did India Ban TikTok?
India was TikTok’s biggest market with over 650 million active users. The value of India’s TikTok was worth more than $10 billion. However, TikTok was recently banned in India as they could not clear the long-lasting allegations. It is believed that TikTok shared personal and public information of Indian citizens to the Chinese government. In the wake of the coronavirus outbreak in March, Chinese apps and products witnessed a steep decline in India.
Moreover, the ban decision was regarding the border tensions between the two countries. Slogans like ‘Ban Chinese Products’, surfaced all over the country. Abiding by the increasing tensions, the Indian Government banned 59 Chinese apps including TikTok. Other apps are also on the radar to banned in future. Microsoft’s ambitions are to take over the TikTok’s stake in India and remove the stigma of Chinese company behind it.
TikTok’s market share in India was huge. The company invested millions of dollars to create such a huge audience. But since the ban, many rival video-sharing competitors like Mitron, Roposo, Moj and Josh are receiving engagement like never before.
Will Trump Also Ban TikTok?
Under the speculations of information being shared by TikTok, Trump and the US government are also on the talks of banning the app completely by September 15. Trump pressed that it should be sold to an American company to avoid all the security issues.
Reportedly, Trump has pushed the deadline for another 5 days and made it September 20. TikTok has to make faster decisions or else face ban in yet another country.
The increasing pressure on TikTok will lead to surprising results. Microsoft is urging to buy TikTok’s market in the US and other countries but none of the parties has confirmed anything on the topic.
Why is Microsoft eager to buy TikTok?
Microsoft is the second-largest software used across the world. The market value stands at $1.6 trillion and is second only to Apple. The acquisition of TikTok will help widen the spectrum for Microsoft.
TikTok will help Microsoft achieve all the goals of AI (Artificial Intelligence) with t=its database. The app usually holds the key to all trending topics, videos and which brands are selling hot. Microsoft can use this data to understand trends and brands and use them to develop their own brand. The database is the key to decipher what billions of users are interested in and who doesn’t want to know to think?
Even if Microsoft acquires TikTok, it will be an autonomous acquisition and let it run independently. In recent times, Microsoft acquired Linkedin a social networking platform and GitHub a software developing service but kept it an autonomous decision.
Furthermore, reports expect the same to happen with TikTok as well. But if Microsoft allows ByteDance, to function independently it will not be able to build in India. Moreover, in any other countries where the app is banned due to security reasons.
ByteDance is under tremendous pressure to make adequate decisions at this point. Abiding by the 20th September date ByteDance will either lose all their TikTok US business or transfer it to a trusted US counterpart.Microsoft has succeeded financially for innumerable years and this acquisition will mark the next level of growth.
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