It appears as though history may be echoing, for it seems swiftly, as the U.S. President Trump announces that Microsoft is, in fact, vying to acquire TikTok.
Over the weekend, I came across news suggesting that both Microsoft and Oracle are competing to acquire TikTok. This Chinese social media giant is valued at potentially $100 billion, thanks to its unique algorithm known for its addictive nature. These days, TikTok reigns supreme as the go-to platform among younger generations who seem to be moving away from Facebook and Instagram in recent years, drawn by the fast-paced video-centric experience that TikTok offers.
In 2020, Microsoft was part of discussions to purchase TikTok. Both Oracle and Walmart were also considering buying the app at one point. Microsoft CEO Satya Nadella described it as an unusual project he had ever been involved with. The reason ByteDance was even contemplating a sale was due to pressure from U.S. Congress to move the app’s operations to the western hemisphere. American politicians believe that TikTok’s Chinese origins pose a threat to national security. China, on the other hand, bans Western social media apps like Facebook and Twitter from operating within its borders, which some argue creates an imbalance. Elon Musk, for instance, is among those who hold this view.
For quite some time now, I’ve been advocating against a TikTok ban due to its infringement on the principle of free speech. However, it’s troubling that TikTok can thrive in America while its Chinese counterpart is restricted within China. This imbalance needs resolution. Here’s a link discussing this issue: [link]
January 19, 2025
According to Reuters’ latest report, U.S. President Trump admitted that Microsoft is in negotiations to acquire TikTok entirely. The U.S. Congress has mandated that TikTok must sell its American operations or discontinue functioning within the country. Incoming President Trump issued an executive order, granting TikTok 75 days to find a resolution, which appears to involve either a full or partial purchase by a U.S.-based firm.
Microsoft manages a professional networking platform called LinkedIn that primarily focuses on career-related activities, such as job hunting and networking. Unlike platforms like TikTok or Instagram, which have become cultural sensations, LinkedIn doesn’t hold the same level of influence over global trends, opinions, or marketing. However, in recent times, TikTok has indisputably impacted global discourse, political movements, and marketing strategies. There have been investigations by regulatory bodies like those in the European Union into whether or not TikTok’s algorithm might be being exploited by nation-states to sway election outcomes.
As a tech enthusiast, I find it intriguing to see who might be the next owner of TikTok. Among the contenders are Oracle, the cloud titan that currently manages TikTok’s U.S. operations, and Microsoft with its Azure platform powering TikTok’s AI features, creating a natural connection. Even Elon Musk, the mind behind X, has been mentioned as a potential buyer in this exciting race.
Could Microsoft really buy TikTok?
Just a few weeks ago, TikTok was on the verge of shutting down rather than being sold to a buyer, but now it appears a sale might be imminent. The potential purchaser could be facing the most expensive tech acquisition ever, given the enormous valuation that Bytedance is likely to demand.
Previously, Bill Gates, former CEO of Microsoft, referred to a potential acquisition as a “toxic cup” for the company. He explained that being significant in social media isn’t an easy feat, stating, “It’s a toxic cup. Managing big businesses in the social media sector is no walk in the park.” Gates highlighted the high level of political scrutiny associated with this industry. Microsoft may not be the ideal match for social media, and they have struggled to produce consumer-friendly products effectively in recent times. Notably, Microsoft had trouble handling Skype, a platform that was once widely used for online communication.
It’s clear that this deal has a strong political component, and it’s not easy to maneuver through these complex politics. Usually, Microsoft is skilled at navigating Washington’s political landscape, but recently, politicians from both parties have been expressing concerns about the power of tech giants. Just yesterday, Vice President JD Vance stated that his administration thinks big tech companies like Microsoft possess “too much influence,” which seems conflicting with the intention to grant Microsoft one of the most powerful global platforms.
It seems unlikely that Microsoft will acquire TikTok, given the factors mentioned. While acquiring TikTok could be beneficial for Microsoft in the short term, their slow-moving corporate culture may hinder them from thriving in fast-paced, consumer-driven markets like social media. Quickly adapting to trends is crucial in this sector, and unfortunately, Microsoft’s size often slows down their agility.
… But hey, direct TikTok integration with Xbox and Windows could be pretty cool?
Neither Microsoft or Bytedance has offered an official comment on the reported talks as of writing.
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2025-01-28 14:41