TikTok is one of the most popular applications to be developed to date.
Although the concept of short dubbed videos is not new, as we’ve seen apps like Dubsmash, TikTok has become a global sensation.
The application, owned by parent company ByteDance, has established itself as a benchmark for many in different aspects.
Brands are now opting to use out-of-the-box marketing on the platform to reach more youth as the database comprises of more than 1 billion users.
Now, according to recent reports, Microsoft Corp is interested in acquiring TikTok from ByteDance. It is expected that the acquisition will be completed by September 2020 if all things go according to plan.
On Sunday (2nd August 2020), Microsoft confirmed its interest in exploring the purchase of the video platform. In a blog post, the leading tech titan shared how it has already discussed security concerns with US President Donald Trump, and it plans to seal the deal with ByteDance by mid-September.
Microsoft fully appreciates the importance of addressing the President’s concerns.
It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.
Microsoft will move quickly to pursue discussions with TikTok’s parent company, ByteDance, in a matter of weeks, and in any event completing these discussions no later than September 15, 2020.
During this process, Microsoft looks forward to continuing dialogue with the United States Government, including with the President, – the Microsoft blog read.
What Does This Deal Mean For Microsoft?
If the Satya Nadella led company is successful, it would mean that Microsoft would be in charge of all operations and decisions for TikTok in the United States, Canada, Australia, and New Zealand.
The two companies have provided notice of their intent to explore a preliminary proposal that would involve a purchase of the TikTok service in the United States, Canada, Australia, and New Zealand and would result in Microsoft owning and operating TikTok in these markets.
Microsoft may invite other American investors to participate on a minority basis in this purchase, – the company continued in the blog.
What About Data & Privacy Concerns?
Because privacy is a huge concern, and given that TikTok has had a colorful past when it comes to exposing data of minors and other individuals, Microsoft has ensured that all data within the United States will remain within the borders and will not be shared with other countries.
In case there is a fluke and data is shared outside the country, the servers will be erased after the information is transferred. Privacy of user data is ready one of the primary reasons why countries like India and the United States have considered banning TikTok in the first place.
According to Microsoft, it will restructure the entire operation of the app to ensure world-class security and will be completely transparent with the US government.
This new structure would build on the experience TikTok users currently love, while adding world-class security, privacy, and digital safety protections.
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, -the company said
We now have to wait and see if the deal gets sealed and if Microsoft saves TikTok from being banned in the United States.
Stay tuned to Brandsynario for more news and updates.