Microsoft is coming after Facebook

Pic credit — ET NOW

Facebook which is the biggest player in SocialMedia with Instagram and WhatsApp Inc. with it. Its current market cap is $718.42 Billion

TikTok is facing issues with the USA government over its data security and its connections with the Chinese Government. USA President Donald Trump recently said he is going to ban TikTok in the USA

Finding it a great opportunity Microsoft one of the biggest companies in thwe world with the Market Cap of $1.64 trillion which is huge (For comparison India’s GDP is around $3 trillion so by this we can know how big Microsoft is it’s a giant company with a market cap of halt the size of GDP of a big nation like India which is home to around 1.3 billion people ) CEO Satya Nadella recently confirmed that they are in talks with ByteDance parent company of TikTok for buying out its operations in the USA, Canada, Australia, and New Zealand

By this move, Microsoft will get a large piece of today’s social media sector. And it will directly compete with Facebook in the social media sector which recently launched TikTok like feature reels in its Instagram which has got mixed reviews.

Currently, Microsoft owns LinkedIn which he acquired on June 13, 2016, for $196 a share, a total value of $26.2 billion, and the largest acquisition made by Microsoft to date which is also a social media platform but it is mainly only for the corporate world. A common person in a small or tier 2 or tier 3 cities does not use Linkedin but there is a high chance they use Instagram, Facebook, and now TikTok Which Indian government had recently banned over data security concerns.

It’s not confirmed how they will integrate it or how they will operate it as in the past they have bought many successful companies but they do not have a great history with their merger with the existing system and later selling it back to another company like they bought 2 September 2013 Nokia’s mobile division a deal totaling over €5.4 billion and then renamed it windows phone which was a very huge failure in the market because they used windows OS. And later they sold its branding rights to Finnish firm HMD Global and contract manufacturer Foxconn for $350 million.

It will be interesting to see how they are going to handle it and if they successfully integrate it then it can be a great asset for them in the near future as it's not hidden how much TikTok has become popular around the globe and if it will be owned by Microsoft then It will be a win-win situation for everyone as the current investors of TikTok will get a good amount of money for their stake in TikTok and Microsoft will enter into social media sector with a product which has a great userbase and very popular around the whole globe.