TikTok has been in the news a lot lately, for reasons both good and bad. Now the social media platform is garnering attention thanks to Microsoft’s interest in acquiring the app. But why does the software giant want to acquire the platform, and what might happen if they do? Read on to learn about the speculation surrounding the app, including cybersecurity concerns in Phoenix, AZ:
- The platform is widely used across the globe: TikTok has over 100 million users in the United States alone, and 500 million worldwide. Microsoft is aiming to purchase the United States, Australia, New Zealand and Canada TikTok businesses.
- They have until September 15 to make a deal: It seems like it has been just days since President Donald Trump announced that the United States would ban the hugely popular social media platform, but Microsoft’s interest could change his mind. Trump previously cited data and privacy concerns, worrying that the TikTok platform was sending information to China’s communist party. Now that Microsoft is pleading their case, they have until September 15 to reach an agreement with TikTok. The company has promised that, if they are able to acquire, they’ll perform a security review to ensure no data is leaked or used for nefarious purposes.
- It could cost as much as $50 billion: At the end of June, Microsoft reported $136 billion in cash—so a $50 billion price tag is a hefty chunk of the company’s cash reserves. Experts suggest that it won’t raise Microsoft’s valuation enough to make it a fiscally worthwhile purchase, either. They expect it could add about $1 billion to Microsoft’s coffers.
- Microsoft may be trying to compete with other social media platforms: No one knows for sure why Microsoft is aggressively pursuing TikTok, but there are a few viable theories. One is that Microsoft wants to capitalize on a social media platform that can compete with Facebook, Instagram and Twitter—and TikTok’s huge user base would provide that. It would certainly be a feather in Microsoft’s cap, as the company also owns Xbox, Minecraft, LinkedIn and more. Some are concerned that this move could further cement a Microsoft monopoly. Tech monopolies are a hot topic lately, particularly in light of the primaries and upcoming election—allowing a TikTok purchase might be politically unwise.
- It’s all about the data: Finally, and most importantly, if Microsoft purchases TikTok, they’ll have access to a significant amount of data. This isn’t necessarily a bad thing—Microsoft often uses its user data to improve and develop new projects. It may also improve their artificial intelligence research and help them promote their own products and devices to a younger crowd.
However you feel about the potential acquisition of TikTok by Microsoft, one thing is for certain: it’s crucial that you know what data you’re sending to any company when you use their products and services, and how it’s being used. For cybersecurity help in Phoenix, AZ, look no further than GeekForce.biz. We offer free consultations—call us to schedule yours today!