If you’ve been following the news for a few days, you probably know that TikTok has been the focus of the White House. Donald Trump wants to ban the social network, along with WeChat, on US soil for national security reasons. The two apps would secretly collect data from American users to send to China.
Similar motivations led India to ban TikTok on its territory earlier this year. Donald Trump, with great kindness, left TikTok with a way out. To avoid being deported, the Chinese social network’s operations in America must be acquired by an American company.
45 days non-stop
Microsoft quickly began negotiations and made an offer. Buy TikTok in the US, as well as Canada, Australia, and New ZealandMeanwhile, Donald Trump signed two executive orders to put serious pressure on the negotiations.
Simple, The Redmond firm has 45 days to complete the operationIn this case, TikTok would be banned in the United States. Despite this extremely tight deadline, Microsoft has decided to expand its offer. The goal is simple: Buy almost all of TikTok’s activitiesIndeed, according to the Financial Times, several sources familiar with the matter confirm that the American giant wants to expand its offer to other parts of TikTok.
Target India and Europe
In this case Microsoft wants to include Indian and European sections in salvation. Before the app was banned in India, it was very popular there and had accumulated 650 million users (so Microsoft could save it if TikTok takes over).
More specifically, if the buyback occurs under these conditions, Microsoft will be in charge of almost all TikTok activitiesWith one exception: China. Parent company ByteDance will therefore only be responsible for Douyin (editor’s note: TikTok’s name in the Chinese region). However, according to the Financial Times, Microsoft did not make this decision at random. Indeed, a partial takeover of TikTok’s activities could be problematic.
Let’s take an example. If the American branch is under the control of Microsoft, but the European branch is under the management of ByteDance, how can we reassure Donald Trump that the data of an American citizen using TikTok in Europe will be protected? Through an international takeover, Microsoft eliminates this possibility and guarantees the same data processing for every user around the world..
Microsoft is walking on eggshells
Whatever this operation One of the most complex studies Microsoft has ever undertakenAs the Financial Times rightly points out, Microsoft has a sacred balancing act. The company must meet the demands of the Trump administration, ensure investment capacity (the takeover will cost billions of dollars), consider ByteDance’s demands, avoid a decisive rift with Beijing, and formulate its long-term strategy. TikTok. Just that.
Source : Financial Times
