TikTok is a hugely popular social network that has landed itself in deep waters owing to its Chinese ownership. With The US, considering it a social security risk, planning to ban it, there are also reports on Microsoft exploring the takeover bid for TikTok’s American operations. While this might seem a little weird and raise the question “Why Microsoft wants to buy TikTok?”, it isn’t really peculiar if we start digging the past and understand Microsoft’s buttoned-up business plans.
Here are 5 reasons why Microsoft could buy TikTok
- With over a 100 million users in the US itself, it is but natural for Microsoft to eye TikTok as it will help the technology giant beat its real competitors, YouTube and Facebook
- A move to acquire TikTok’s operations in the US, Australia, Canada, and New Zealand could prove quite beneficial for Microsoft’s existing businesses. The takeover will ensure optimum business continuity as Microsoft will gain access to all private data of TikTok’s American users.
- The new acquisition will further assist Microsoft in its research. The software giant has been long dependent on Xbox Live to assist Microsoft in future software and hardware projects. The new data will further assist game developers and Microsoft to develop a better understanding of the internal demands and will serve as a great tool in altering and enhancing current product portfolio.
- Owning TikTok operations will provide Microsoft with a direct line to millions of social network users who not only use the app to watch videos, but even with those who use TikTok it to create valuable content. This will help Microsoft enable its Windows operating system to be more consumer-friendly with video creation app as TikTok allows users to create videos from their mobile itself.
- If Microsoft is able to crack the deal, then it will gain direct access to TikTok’s user base. They can then use it to their advantage with ads for not only Xbox, Surface and other products, but will serve as a great platform for its future game-streaming ambitions.
Let’s not forget Microsoft’s broad ambitions for AI that goes beyond workplace. TikTok’s database will serve as an authentic consumer testing ground for its AI work. It is so because TikTok had been utilizing AI for facial recognition with its popular filters and in the recommendation engine that drives the For You feed. It is this AI feed that commanded what you saw in the app.
The pressure, growing media debate and alternative of a shutdown, may all work in Microsoft’s favour, however, however, the biggest question that still remains is, will the software giant put in so much devotion to TikTok and its consequent political issues that it gets distractedfrom its very profitable core of serving business customers?
Stay tuned for answers and updates!