Microsoft Taking Over Tik Tok: A Brief Discussion
Tik Tok is a popular video-sharing app. Recently, it has been banned in India, and America also following the same way. Here comes a second thought, to get this video sharing platform under one American organization. American tech giant Microsoft shows their interest to be a partial or full owner of Tik Tok.
Microsoft requested to hold the decision to ban Tik Tok in America till 15th September. They wanted to discuss the possibilities and challenges to be a shareholder of Tik Tok in America. They wanted to discuss with the American government as well as with the ByteDance- the owner of Tik Tok; a Chinese company. Trump administration grants a 45 days time interval which allows Microsoft to make a decision and to close all the respective formalities. The decision has been taken that if no American company becomes a full or a partial owner of Tik Tok then it is going to be banned in America.
Tik Tok is a very popular app. It is especially popular among teenagers as well as celebrities are also now using this app. According to statics, Tik Tok app was downloaded near about 2000 million times. Only in the USA, it was downloaded nearly 165 million times. Presently, active users of Tik Tok are around 80 billion.
The main reason to ban Tik Tok in America is the allegation of data theft. In recent years, the American government took the same action against Chinese telecom giant Huawei in an allegation of data theft. America claimed that Huawei is transferring users` data to the Chinese government which is a national threat. Now, Trump administration following the same track against Tik Tok.
ByteDance repeatedly saying that they are not sharing user`s data to the Chinese government. But, America is not satisfied though. The reason behind this is the rule of the Chinese government- All the Chinese owned companies are bound to provide personal data of users to the government. This particular rule is placing America in an uncomfortable position.
Trump administration has been decided to ban Tik Tok in America to secure users’ data. Along with this decision, they have provided a solution to permit Tik Tok in America. The solution is to buy the American part of Tik Tok for American users by an American company. In this way, the American government wants to secure personal data. Microsoft already showed their interest to buy the operating part of America, Canada, Australia, and New Zealand. There is a discussion going on between two companies. If the deal is successful, it will be beneficial for both America and Microsoft. But some questions and doubts are still available there.
A recent blog post from Microsoft states that depending on a successful deal to become the owner of the American part of Tik Tok, they will assure to keep users data within the country. Also, they will be responsible to bring back previous data and will take the necessary steps to delete any kind of copy of the previous data. Microsoft said that the security of users` data will be their priority. They also stated that all the discussion is still at the beginning level, they will come out with finalization within 15th September.
If Microsoft makes it possible to buy Tik Tok, it will make them fortunate. Because they will be the owner of a huge data bank of the users. They can use these data in various ways. Recently, Microsoft introduced Xbox live to get ideas about the future manufacturing of software and hardware. Presently, Microsoft didn’t show a markable success in direct consumer product services. Tik Tok can be a good solution to overcome this particular situation.
Buying Tik Tok enables the opportunity for the advertising business. In comparison with Google and Facebook, Microsoft is far behind in the case of revenue-generating from the advertisement. The amount of money earned through ads by Microsoft in one year is the same as one week earning Facebook. It will be helpful to generate revenue from advertising. Also, the advertisement for Microsoft`s product can be performed by Tik Tok.
Microsoft also has a higher ambition about AI implementations in various sectors. Tik Tok already using some AI applications in their system such as facial recognition. Besides these, Ogmandate reality and AR technology will enable some advantages to Microsoft. Microsoft will also be benefited by using a bunch of skilled manpower of Tik Tok.
In current metrics, the top search engine is Google. Google also has a step ahead position in emailing facilities by features like Gmail. In the case of the mobile phone, the market is dominating by android and iPhone. In all these sectors, Microsoft is lacking behind. Owing Tik Tok will help Microsoft to get their position back in the various markets.
Buying Tik Tok, the possible parties like Google, Apple, Facebook, and Amazon are in back foot in the race. All of them are facing charges like monopoly and questioned by congress. Microsoft is looking forward to using this chance. But, success is still far.
Microsoft failed several times to provide direct consumer service. In times, they have shut down several services like Groove Music Services, Kinect Xbox Accessories, Windows Phone, Mixer Streaming Services. During the pandemic period, skype failed to compete with Zoom, Nokia also failed to maintain its market. These failures making an uncomfortable situation- the market can not rely fully upon that Microsoft will be succeeded after buying Tik Tok. Though, Nadella ( New CEO of Microsoft) is providing a positive image towards the market. Nadella showed some upward graph by taking over LinkId In and Git Hub.
The purchasing process of Tik Tok is also unusual. As Microsoft is not buying the whole Tik Tok. They are just trying to buy the operational part of Tik Tok in the USA, Canada, Australia, and New Zealand. Seems like it will create a bizarre social platform. It is not cleared yet that how they will divide these four regions` operations. Also, there is a question regarding the viewing of uploaded videos from other regions. It is not clear how one American will view the European video. Though, it is demanding that there will be no such change in the basic process in Tik Tok.
Again, the separating procedure is not visible. Is there will a separate app for Americans? If it is separate then separate server, separate manpower will also be required to pursue the tasks. It will result in higher costing. Advertisers also will face lots of fo challenges. Another important thing is that the main users of Tik Tok are from Asia. If they just take care of the American part then they are going to have only one-third of the headcount. It will result in greater costing value that the revenue.
The video reach also going to be limited. The present algorithm of Tik Tok is quite remarkable and acceptable. There is a certain chance the ByteDance will not share the current algorithm with Microsoft, which can make the American part Tik Tok as quality-less.
The main point of the argument regarding Tik Tok is the data. The process of data arrangement is still foggy. There is no clear vision to see the path of separating these four countries’ data from other countries. The separating process is still not acceptable to some peoples. Lots of USA senators are in the favor of banning Tik Tok.
There is also a chance to push ByteDance to sell full Tik Tok to Microsoft. This also raises a confusion, the operating chief will work with Microsoft or will work with ByteDance. Facebook also going to lunch Instagram Riley which will be similar to Tik Tok. So, there is a doubt in the market about the success of Tik Tok. Some are already thinking that Tik Tok will not survive in the competition.
ByteDance is also under huge pressure to keep the existence of Tik Tok. In India, Tik Tok already lost huge users. If it becomes a ban in the USA also then Tik Tok will not survive. So, Bite dance is bound to sell it fully or partially.
There is no declaration from ByteDance end. But the most possible company is Microsoft. On the one hand, Microsoft will be lucky if they can purchase Tik Tok, on the other hand, it is really sad from Tik Tok end. It is the prime obstacle to become a global product if Tik Tok got the sharing format.
