Microsoft on Sunday said that they would acquire TikTok, following a conversation between Microsoft CEO Satya Nadella and US President Donald Trump who previously decided to ban TikTok in the US.
Earlier the US ,Treasury Secretary Steven Mnuchin stated that TikTok is under a security review which suggested a possible ban of TikTok in the US.
Microsoft confirmed it would “move quickly” on discussion with ByteDance and said they have given the government the notice of possible acquisition of the assets of TikTok.
Now all this was the public statement released by Microsoft but didn’t you find it unusual when Microsoft decided to acquire TikTok?
Microsoft is focused mainly on enterprise software over the past few decades so why are they planning to buy a social media platform or more accurately why TikTok?
The answer is “DATA AND MORE DATA.”
After the acquisition of TikTok, Microsoft will gain access to the data they have been collecting over this period which is huge, and even Microsoft discussed the importance of TikTok user data in their blog post which promises the user data of American TikTok user to remain in the US.
I think the user data acquired by TikTok from the US and its possible misuse by the Chinese Government gives Microsoft the perfect reason and the chance to acquire TikTok.
The user data of TikTok could help Microsoft with the future developments in Xbox Live, Xbox and its accessories too. In other words after the acquisition of TikTok, they would gain access to the user data of millions of youngsters.
In fact, Microsoft could use TikTok’s AI which is used for facial recognition for the filters to improve Microsoft’s own AI-powered Chatbots for consumers.
Even Tiktok can serve Microsoft as an advertisement platform for the their products like Surface, Xbox, and other products.
Microsoft’s plan to buy TikTok is really unusual and this is not simple as it sounds and this deal would be a billion-dollar business for Microsoft as TikTok is no less considering its valuation.
“I set a date of around Sept. 15, at which point it’s going to be out of business,” unless it surrenders Chinese ownership, Trump told reporters on Monday
Trump’s direct involvement in this deal also suggests that this deal could benefit the US by not allowing the Chinese to use the user data from the US tech ecosystem and if it’s true Trump is no shy to hold back his involvement in this deal
That being said this deal would be one of the successful acquisitions (considering his past deals) made by Satya Nadella during his tenure in Microsoft as the Chief Executive Officer.