TikTok banned? Microsoft might get another opportunity to buy the social media firm, if this new U.S. law passes

TKFFF · 2024-03-08 11:31
What you need to know
- In August 2020, Microsoft had a strange, short-lived opportunity to buy TikTok, after parent company ByteDance was coerced into selling its U.S. operations by the Trump administration.
- Microsoft's deal to buy TikTok quite quickly fell through. Oracle was chosen instead, however that never happened either.
- Once Joe Biden took over as President, calls for ByteDance to divest TikTok waned. Until now.
- Now, "more than a dozen" U.S. lawmakers, both Republican and Democrat, have produced a bill that would once again force ByteDance to force divestiture of TikTok to a U.S. tech company, over "national security concerns."
Update (March 8, 2024): TikTok hits back
Interestingly, TikTok seems to be taking this bill pretty seriously. It has started sending out notifications to some users telling them to contact their congress representatives to prevent the bill from moving ahead. According to Politico reporter Olivia Beavers, the notifications have "backfired" with U.S. politicians, with some who were on the fence now fully believing in the narrative that TikTok can use its clout to manipulate public opinion, if it so chooses to do so. The bipartisan committee overseeing the legislation voted unanimously to put it to a House vote next week. We could actually see TikTok divested in the United States, or perhaps even shut down entirely — although some legal opinions seem to suggest that a total shutdown of TikTok would amount to a violation of the first amendment and free expression laws. Representatives may be called to argue in court how TikTok amounts to a "national security concern," which is perhaps one of the few legal avenues the bill might have to circumvent first amendment rights.Another chance for Microsoftiktok?
The United States administration of both parties have scrutinized TikTok heavily from a variety of angles over the years, with differing levels of aggression. President Joe Biden famously "joined" TikTok last month, despite the fact that it has lent verbal backing to bills like the above that could curtail or even ban TikTok's operations in the United States.
TikTok for its part has always claimed that it doesn't share U.S. user data with the Chinese authorities, although it seems there's no real way to prove whether or not they do.
In any case, Microsoft was one of the first companies to line up with attempts to buy TikTok back in 2020, although for whatever reason, the deal didn't pan out. TikTok's revenue globally is somewhere in the region of $84 billion according to reports. Microsoft's current "cash on hand" is roughly $81 billion according to MacroTrends, with the Activision-Blizzard acquisition no doubt putting a big dent in its previous milestones. It's hard to get an estimate on how much TikTok's U.S. operation might be worth, but it's easily in the multiple tens of billions.
TikTok would be a significant boon to Microsoft, even if they were only able to purchase the rights to the U.S. version of the app. It would give Microsoft a "cool" social network to rival the likes of YouTube and Instagram, while also challenging Google in search and ad networking. It could even become a vehicle for promoting Xbox and A.I. services as well. Microsoft could also integrate it into their primary social network, LinkedIn, which has become a huge pillar for the company in recent years.
Either way, it's unclear how attempts to ban TikTok outright would actually function, with rights groups arguing that a ban on TikTok amounts to a violation of the first amendment. Given how much bigger TikTok is in 2024 than it was in 2020, you have to wonder if Microsoft could even afford to pull off such an acquisition, or if they'd even have the stomach for it.
Maybe it would be worth it. Stranger things have happened, no?
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文章来源:Windows Central
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