Reports of negotiations between Microsoft and BateDance for the acquisition of Tiktok’s operations in the United States surfaced on Friday, and at the same time, US President Donald Trump announced that he was ordering a boycott of the app’s operations in the country.
Conspiracy theorists will link the Trump announcement to the revelation of business negotiations. Tiktok has become a serious threat to the activities of American social media giants – both Google and Facebook are trying to emulate its features so far without success. Tiktok, despite its American roots and CEO, is still considered a Chinese wedge in the heart of the US-dominated Internet world.
Microsoft enters this mood with a smile. The company has undergone a lot of refinement in recent years, and it seems that since the beginning of the corona it has been able to translate much of its strategy into success and revenue. The transition to remote work has redefined the tools we use. Eliminated an office order in the office computer, now everything is done through the cloud, the main area in which Satya Nadella, CEO of Microsoft, has invested in the years since taking office. Whether it’s a Teams app for video calls, an increase in the use of LinkedIn as a business social platform or an increase in sales of computers for work from home that include a new Windows license for every computer buyer. Everything the company does seems to work for it.
But this is not just a business vision. Nadella managed to steer his company without hurting the egos of any politician, not Trump, not Barack Obama, not Vladimir Putin, not Narendra Moody and not even Xi Jinping. He also managed to avoid pulling the fire of regulators. Microsoft is active in China and India, but it has not been invited to testify in Congress or the Senate and Trump has never publicly attacked it as he did to Amazon, Google or Twitter. She even managed to evade an attack from the protesting public, whether the “Black lives matters” or “MeeTo” protests. Apple, on the other hand, is leading a protest in Balfour.
Now, if the reports of Tiktok’s acquisition attempt are true, Microsoft is on track to overtake everyone in the round. Acquiring Tiktok makes a lot of sense for the company – it will complete its control over a series of online services that can all give it a business advantage over the competition. And it’s not just for her. Facebook is a direct partner of Microsoft, and recently won a “gift” in the form of the streaming mixer platform – a failed competitor of Twitch from Amazon. The acquisition of Tiktok’s activity is also an excellent move for Facebook, it keeps the threat away from it.
It’s hard to say right now if the reports will end in a deal between Microsoft and BateDance. It could also be that the latest reports are a spin designed to improve Microsoft’s bargaining position. This should come as no surprise, every business negotiation is always accompanied by a series of “leaks” to the media designed to put pressure on the opponent. BateDance operates a very successful version of Tiktok in China, but the Western market has also been captivated by the short videos with the short videos, meanwhile the pale imitations uploaded on YouTube or Facebook do not really pose a threat. So Tiktok has an excellent bargaining position vis-à-vis any potential buyer.
This is a position that needs to be cracked so that Microsoft can infiltrate and acquire the company whose estimated market value stands at tens of billions of dollars. This is a huge, potentially more expensive purchase than a LinkedIn purchase. But it will give Microsoft a service that competes with great success on Google’s YouTube, Facebook videos and even to some extent on Twitter, Snapshot and Instagram. If the deal is not executed, it is likely that Tiktok will officially disappear from the Western market and be replaced by similar services of the technology giants. Or the young people will circumvent the ban and connect with a VPN to a Chinese service that is forbidden to use some kind of poetic irony.