In a move that could mean a serious shift for one of the biggest social media apps, Microsoft may buy Tik Tok. Tik Tok, an app popular with children and focused on sharing dancing and lip-synching videos, is owned by Chinese company ByteDance. Microsoft on Sunday confirmed that it’s in talks to acquire the app, and is in communication with the US government on the matter.
Why the US government? Chinese information companies have been receiving scrutiny as of late over accusations of gathering confidential data. Some lawmakers, like Mike Pompeo, Secretary of State, have raised concerns over apps like Tik Tok. The app, which is very popular and widely used, is worth multi-millions of dollars.
A potential Microsoft buyout of a massive Chinese social media platform would be a huge step in saving the platform in the US. Microsoft has been given a deadline of September 15 to finalize the purchase of the app. Should they fail to do so, it is likely that the app will become unavailable in the US. Shortly after news of the potential acquisition broke, President Trump made a statement. He said he doesn’t like the idea of Microsoft buying the app.
Further, Trump has suggested he may still move to try to have the app banned in the US. However, it is unclear if this will be the case after Microsoft’s CEO, Satya Nadella, spoke to the president privately. Microsoft would be purchasing rights to the app in parts of the English-speaking world. These would include the US, 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,” the company said in a public statement. “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.”
This means that the fourth quarter could be massive for Microsoft. If they acquire Tik Tok in September, the company could gain big. They’ll not only become owners of a massive social media app, they’ll also defuse major tensions in Washington DC. ‘
Moreover, later this year, Microsoft is releasing their new console, the Xbox Series X. If the cell phone deal of Tik Tok and the new console play out well, Microsoft investors will be enriched. However, whether or not this sale will be finalized remains to be seen.
