Microsoft confirms talks to buy ByteDance's TikTok

ByteDance's TikTok under the radar
Over the past few weeks, the Trump Administration has threatened to ban ByteDance’s TikTok over data privacy concerns and threats to the US economy. So much so that the administration has now given Microsoft 45 days to secure a deal. But how did we get here?

Why TikTok?

Since the start of the pandemic and lockdowns around the world, people have been finding new ways to stay connected. Along with apps such as Zoom and Houseparty, TikTok has seen tremendous growth, particularly among young people. There are 100 million TikTok users in the US including many content creators who have curated massive followings. 

TikTok’s parent company ByteDance is based in Beijing, China meaning it is subject to local laws. This is particularly concerning to US authorities as this gives the Chinese government’s access to TikTok users’ data.  So much so that there have been posts and commons on Blind where Amazon considered asking employees to delete TikTok off their work phones. Reports of staffers working on Joe Biden’s campaign were also asked to delete the app. 

At the beginning of July 2020, the Indian government banned TikTok and other Chinese apps such as WeChat following border clashes. The Indian government also cited data security and threats to national security. 

From threats of a ban to a window for an acquisition

On Friday, July 31st, the Trump administration was hinting at banning TikTok for US residents but pivoted on Sunday, August 2nd. After speaking with Microsoft CEO Satya Nadella, Trump allowed Microsoft 45 days to secure a deal to buy TikTok from ByteDance. There are also late reports where Trump has suggest that part of the funds of the sale should be transferred to the US Treasury even though there is no such precedent.

What is the Community on Blind saying?

The community on Bling is very engaged on this topic with both TikTok, ByteDance, and Microsoft users weighing in. 

Additionally, some professionals have been fortunate to receive job offers from TikTok and are trying to suss out whether they should accept. Blind’s recent survey on the potential acquisition has found that 60% of people would trust TikTok with their personal data if owned by Microsoft. 

As with anything and everything so far in 2020, time will tell. The team here at Blind will continue to monitor and this story as it progresses.

Notable Tech Acquisitions – Which Products are still here? Or thriving? 

There have been many notable acquisitions by major tech companies. Some of them have yielded tremendous growth while others have ended up less than lucky. The same Blind survey showed that 59% of respondents think TikTok would not do better if owned by Microsoft. Here is an incomplete timeline of some acquisitions that caused the industry to take note. Is tech history doomed to repeat itself?

  • April 1998 – Amazon buys IMDb for $55 million
  • November 2006 – Google buys YouTube for $1.65 billion
  • January 2008 – Amazon buys Audible for $300 million 
  • November 2009 – Amazon buys Zappos for $1.2 billion
  • May 2011 – Microsoft buys Skype for $8.5 billion
  • April 2012 – Facebook buys Instagram for $1 billion
  • October 2012 – Twitter buys Vine for $30 million
  • January 2014 – Google buys Nest for $3.2 billion 
  • February 2014 – Facebook buys WhatsApp for $19 billion
  • March 2014 – Facebook buys Oculus VR for $2 billion
  • August 2014 – Amazon buys Twitch for $970 million
  • January 2015 – Twitter buys Periscope for $100 million 
  • June 2106 – Microsoft buys Linkedin for $26.2 billion
  • July 2016 – Snapchat buys Bitstrips/Bitmoji for $100 million
  • June 2017 – Amazon buys Whole Foods for $13.7 billion
  • February 2018 – Amazon buys Ring for $ 839 million 
  • June 2018 – Amazon buys PillPack for $753 million
  • May 2020 – Facebook buys Giphy for $400 million 

Complete Lists of Acquisitions