While the entire world has been worried about the social media firm TikTok and its concerns over the user privacy, Trump administration has seriously been considering a ban on the video creation and sharing tool. Meanwhile, Microsoft has gone on record stating that it has been considering to a potential TikTok purchase in the US.
It came up with a statement on its blog on Sunday and claimed that it may even invite the American investors to be a part of the deal. The ball is indeed in the President’s court, the Microsoft CEO Satya Nadella has been in talks with Trump in addressing his concerns with the social media company. It may be remembered that Trump had claimed in the past that he is not in favour of the deal between Microsoft and TikTok and has been considering to ban TikTok in the United States.
This is the first time that Microsoft confirms TikTok acquisition officially and has gone on record to indicate that it is in talks with Bytedance (the parent company behind TikTok) for purchasing its operations in the United States, Canada, Australia and New Zealand.
“This new structure would build on the experience TikTok users currently love, while adding world-class security, privacy, and digital safety protections,” is what the tech giant claimed in its statement.
What would the Microsoft – TikTok deal mean?
If the acquisition plan goes through as planned, it is likely to create a big shift in the tech circles. Microsoft is valued at $1.55 trillion and is very much in a position to strike through the deal. Microsoft has been conspicuously absent on the social media circles and the TikTok acquisition can perhaps help it compete with the likes of Facebook, YouTube, and similar services that have become huge players in the realm of social media services.
Of course, Microsoft has been in the professional network arena with LinkedIn, but a social media space for the common people is quite much lacking. The acquisition may also end the tussle between Trump and his adversaries to a considerable extent. Republicans, especially been locking horns with Trump over TikTok.
When will the TikTok – Microsoft deal complete?
It may be too early to make a committed statement in that regard. But, Microsoft appears confident – more so after it has been successful in making Trump rethink over his decision to ban TikTok in the US. It has stated that the discussions for the purchase should complete not later than September 15, 2020.
There is no mention of the TikTok operations in India though. It may be noticed that India has been the huge market for TikTok and it even went to the extent of hitting Facebook when it was operational in India. If Microsoft can hit the deal, it can perhaps indicate the return of TikTok in India once again.
Privacy concerns have been one of the huge issues with TikTok in India or elsewhere, and Microsoft appears to be in a mood to address these concerns most essentially, as can be inferred from its statement that says “the operating model for the service would be built to ensure transparency to users as well as appropriate security oversight by governments in these countries.”
So, we have another huge story that may tilt the scales in TikTok’s favour. If the deal breaks in, the TikTok fans will indeed heave a sigh of relief.
Before we leave you, here is a theory that is stated to be the real reason Trump wants to ban TikTok. He was miffed with a video that went viral which made fun of Trump on the platform.
Whether Sara Cooper was the major reason or not, it appears that Trump’s disharmony with TikTok may end soon if Microsoft can persuade him. Sunday’s statement from the tech giant and the confidence therein speaks of the positive note.