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In the past decade, we've seen a number of big tech companies buying small and medium-sized applications. Examples like Facebook buying Whatsapp and Instagram, for example, have been studied by business analysts to showcase how "assimilating" other technology departments and companies is a way to further develop core technologies within such tech giants. During the past couple of months, Trump has decided to ban TikTok unless an American company stepped in to control its data gathering and acquisition. Now that Microsoft is in the talks to acquire TikTok, what will be the impacts on the market after such a buying process? Let's find out.
TikTok: A Very Expensive Database
As many of you may or may not know, TikTok currently owns 40% of the world's data points, which is insane to think and acknowledge given how big the internet's traffic is nowadays. With this in mind, Trump acknowledged the fact that the Chinese government would have eventually used such data points to influence crucial US events like the upcoming elections and decided to ban the platform unless Microsoft or an American company stepped in to control such a big mole of data. Many app developers have covered how big having such a big database could be for a government, especially during times like these where everything is forced to be digital.
Algorithmic Features For Future Products
Even if TikTok operates with a generally simple to understand setup, its backend technology is pretty insane. To reference, TikTok uses some of the most technologically advanced face recognition algorithms on the market and, given the fact that they are proprietary to the platform, they will most definitely be acquired by Microsoft in case they buy the platform itself. Microsoft currently lacks in using next level algorithms even if they are currently hosting the most advanced machine learning platform (Azure). This would be the perfect chance for them to implement consumers-ready technologies into their flagship products, therefore elevating themselves to an even higher level.
Microsoft buying TikTok could be and will most definitely be remembered as the biggest tech buying process of the century, given how big and how impactful such event will be on both technology and the market itself. With such event, Microsoft will eventually outscale Amazon within the tech sector, a sector which Amazon is reaching with Twitch and Prime Video (for now). It's safe to say that, whatever will happen in the next couple of months, we're in for some big shakes in the tech market.
Related: Why COVID-19 Forced The World To Go Digital And What Will Happen Now