It has been a turbulent period for tech in general as tension between China and the States continue to vent via trade channels. President Trump foreshadowed the end of social media app giant TikTok during his flight and this is no surprise to me as a number of publications pointed to security issues over the last few months. Social media apps have been in hot water before but it’s a different saucepan when it comes to Chinese owned technology in current climates. Regardless of its mammoth user base, the threat of banning the app extends far beyond just words and owner/developer ByteDance recognise the impending struggles that are on the horizon.
Is this the end of TikTok as you know it? Perhaps under ByteDance, but the company are actively seeking ways to continue operations States side through divesting of its social media application. It is most likely down to who is handling user data in the first instance, ensuring that it doesn’t make its way across the ocean. Out of the prospective data controllers, Microsoft are at the very top as it appears that a multi-billion deal could see US based operations taken under its wing. Microsoft and social network acquisition isn’t anything new and the opportunity to swoop up millions of active users might be a move that adds another successful stream to their portfolio. The demise of their Twitch competitor, Mixer does not instil confidence of their latest ventures but they would not be starting fresh here. Acquiring an existing platform and allowing users to operate as normal has a bigger chance in success compared to starting from the ground.
TikTok, a western spin on popular Chinese application, Douyin grew with an aggressive marketing strategy that has rooted itself in society. TikTok has become a big part of social media content creation and I would say it’s almost like “vines” reloaded. Its majority user demographic sits in the lower band of 18-24 and this is echoed across various nations that it operates in. During the current pandemic, it has served as a valuable source of entertainment for users and falling under Microsoft and other operators to continue in the US is logical. The pay out to ByteDance may also be sweet enough as billions of dollars to relinquish operations in the US is attractive and positive in general. Despite things looking grim for TikTok, there is a likely chance that things will keep ticking down the road with possible upcoming acquisitions.
Lockhart Tech Blogs
