• NxtGenCo

Why is Microsoft interested in acquiring TikTok?

Updated: Sep 2, 2020

The news of Microsoft being in talks with Byte Dance to purchase TikTok seems to be a bit odd at first glance. Microsoft has spent years walking back consumer plays such as the Groove Music app, its Microsoft Band fitness tool, Windows Phone, and, more recently, the streaming service Mixer. Microsoft has preferred enterprise applications and services for its business, and even Cortana has shifted to being productivity focussed.

What makes "TikTok" the best deal of the decade for Microsoft?

TikTok offers access to millions of youngsters who use the app to watch videos, and those using it to create content. Microsoft has tried desperately to adapt to the Windows operating system with video production softwares. Since TikTok offers millions of people a simple way to create videos from their phones, it can help address this issue.

TikTok could help to address this blindspot for Microsoft and also influence how other applications and services are built within its business. Microsoft has all the data it wants on software business use. Still, it has not been competitive in recent years on pure consumer services, leaving the company lacking insight into customer behavior.

The key idea behind acquiring TikTok

The central part of any TikTok contract will be the data that Microsoft gains access to and the customer base. This data is the driving force behind the fears of Trump administration about the possible links TikTok has with the Chinese government and how that data might be misused.

Microsoft recognizes the value of every data in all of its blog posts announcing acquisition talks, adding that "Microsoft will ensure that the data of TikTok's American users is transferred to and stays in the United States".

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