When it seemed like peace had returned to the technological world, the turmoil returned. A rumor from Fox Business has indicated that Microsoft is still keen to buy TikTok. For this to be possible, Microsoft would need the agreement with Oracle not to be executed.
TikTok, commitment to social networks convinces Nadella
If you were very busy last summer, you might not know one of the more interesting stories. Following the Donald Trump administration’s veto, TikTok needed an American partner and Microsoft volunteered.
He quickly went from an agreement to use the Microsoft cloud to an agreement to acquire TikTok at ByteDance. For this, Microsoft had to offer itself to the US government and indicate its mode of action, without relying on ByteDance to reject the offer.
The situation was strange, with Microsoft, a serious company dedicated to the business audience, buying up a fairly young social network focused on creative videos, memes and dancing. But Microsoft loves big social networks, we have already seen it with LinkedIn or with the frustrated attempt of Pinterest.
The reality is that TikTok is a gold mine, one of the most lucrative social networks in the world with a highly developed algorithm. Thus, Microsoft not only gained an excellent social network, but also a giant platform on Azure and strengthened its advertising platform.
At that point, Microsoft’s offer was rejected and a deal was made with Oracle. But the soap opera is not over and Microsoft could take over from Oracle. All because Oracle CTO Larry Ellison is a personal friend of Donald Trump and it would have stalled the deal. All of this, which seems to come from an episode of House of Cards, is brewing right now.
In a new deal, Microsoft would not control the service but could host the service on Azure. A small victory for the colossus of Redmond that would allow him to receive huge sums of money from TikTok and also gain the favor of the new administration.