What will happen to TikTok? Lately, a lot of rumors have emerged about what may happen to TikTok. This is in regards to the sanctions that China received from the US by President Trump. Likewise, Microsoft is looking to buy this app but they aren’t alone, Twitter also has its eyes set on the platform. In this post, we will tell you everything you need to know.
First, we know that Microsoft wants to buy It, this, in turn, could save the app from the US ban. Likewise, the current owner of this platform, Phen, has shown interest in this offer despite the statements of the US president, Donald Trump.
For its part, Microsoft confirmed its intention to buy the app in the United States. This came after its CEO, Satya Nadella, had a conversation with the American president. In this conversation, the president revealed his plan to ban the Chinese app in the country. Thus, the app won’t be available in the country.
Why does Donald Trump want to ban TikTok?
We know that TikTok is the social network of the moment. On the other hand, it has also raised tensions between China and the United States.
This tension came after the US president, Donald Trump, declared his intention to forbid the use of this platform within US borders. Thus, he has been taking some actions to remove the app.
Likewise, the US Senate has made progress in this regard. It has forbidden its public officials from using the app on their devices.
What will happen to TikTok? The US president signed last Thursday a presidential decree in which he prohibits any transaction or business with ByteDance, who is the developer of this app, and Tencent, developers of WeChat. Thus, both companies have 45 days to comply with this new standard.
This app has been downloaded at least 165 million times in the United States. Data like this caught the attention of Trump, who makes the argument that China could use this platform for its own benefit.
This presidential decree is supported based on “national security, foreign policy, and the economy of the United States”. Likewise, according to this document, this app has been saving a large amount of user data, such as their personal information. Some of this includes aspects like the location and the Internet searches of users.
Therefore, the US president thinks that this kind of data can reveal very sensitive information related to his government.
Recently, the Chinese short-video app has been the talk of the world
We previously knew that it was under fire because of the Trump administration.
This came after the US president stated his intention to ban the use of this app in the United States. Now, tensions have risen once again this week after the CEO of TikTok, Kevin Mayer resigned.
No one ever thought that a video app could cause so much controversy between the two countries.
President Donald Trump signed an executive order on August 6 where it gave American companies 45 days to stop working with TikTok’s parent company, China’s ByteDance.
A new buyer enters the race
A few days ago Walmart announced that it was joining Microsoft for the purchase of TikTok. This is not a surprise since we know that the rise in social commerce is a mixture of activity on social media and online purchases.
As the saying goes, there’s strength in the union, and these two companies have recently drawn even more controversy. The reason for this is that it seems like the offer of these companies can be more convincing and perhaps even approved by Trump.
We have to remember that he previously said he would support the technology company Oracle in the purchase of TikTok. This makes sense since Oracle’s founder Larry Ellison is a vocal Trump supporter. Besides, Safra Catz, CEO of the same company, has donated to the president’s re-election campaign.
TikTok won’t remain idle
This Monday, TikTok sued the government of Donald Trump for its ban in the US.
TikTok alleges that the Trump administration didn’t allow it to defend itself from the accusations of it being a “risk to the US national security”.
Likewise, it claims that Trump illegally relies on the emergency powers law in ways that don’t apply to the Chinese company.
TikTok has previously said that the only data about its US users are being stored in the US and Singapore. This way they are able to reject any request from the Chinese government to share US user data.
Since then, the video app has studied the possibility of selling the company.
On the other hand, the app has responded to these claims by saying that they receive the same type of information as platforms like Facebook.
They even declared that they have never shared this information with the Chinese government. Likewise, they also said that they have never performed any kind of censorship at the request of the government.
However, this tension between China and the United States has also sparked controversy within the Chinese country. This is the result of the veto and possible sale of TikTok to Microsoft, which has not pleased the Chinese government at all.
What will happen to TikTok? “USA. Will ultimately prove to choose self-interest over market principles “
These were the strong words of Chinese Foreign Minister Wang Wengbin.
Even if the developers of this app have tried to avoid the Chinese government, the truth is that this country has taken this conflict as a matter of state.
Likewise, when it comes to international relations, this friction has become extremely serious.
To make matters worse, the same could happen with WeChat, the Chinese “super app” that combines several services.
This app, which has over 1,000 million users, is almost essential for daily life in China. Because of this, several US providers were trying to attract Chinese customers through the use of the app. This, of course, was before the ban.
What should be taken into account with TikTok?
As you may know, TikTok allows you to create and share 15-second videos. Likewise, it has been one of the most downloaded apps in the last year.
In the first quarter of 2019 alone, it was installed on 188 million mobile phones. According to the latest data, it currently has over 500 million daily active users. This app is becoming very popular among Apple users.
Likewise, according to SensorTowerData, it became the most downloaded app during the first quarter of 2019. Hence, it surpassed platforms like YouTube and Instagram.
All of this places this app above other popular networks such as LinkedIn or Twitter. Thus, TikTok’s ability to capture the attention of Generation Z makes it the most valuable startup in the world.
However, we should highlight the following:
This isn’t an app for children:
This app has its origins in Musical.ly, an application that was intended exclusively for teenagers.
That reputation has endured even after the merge with TikTok in 2017, which is totally understandable. In fact, this app has the youngest user base of all social networks. This means that over two-thirds of users are under 30 years old.
However, if we take a quick look at the app, we can see that even adults have decided to join. This is reminiscent of Facebook, which began as a social network for college students.
The only thing that happens is that young people generally adopt new technologies much faster than other age groups. They do this even before they reach critical mass. Thus, with the arrival of adult creators, should also come the interest of brands to advertise their products and services on this app.
What will happen to TikTok? Comedy rules the world:
Although music remains the heart of TikTok, the platform is no longer limited to just this content.
The large volume and variety of videos available have turned this platform on a diverse source of entertainment. In this platform, you can find content like meme mixes, awesome parkour twists, jokes and even cooking tutorials.
However, they all have the same common goal which is making people laugh.
Thus, a video that has a lot of views and comments shows a strong relationship between being funny and going viral.
From a marketing standpoint, humor can be a powerful weapon when it comes to connecting with consumers on an emotional level.
No need for filters:
As this platform grows, so does the distaste of the polished and artificial aesthetics that we can find on Instagram.
Most of the influencers on this app are teenagers. They were able to earn millions of followers from the comfort of their own rooms thanks to this app.
Likewise, On This app, teenagers feel comfortable showing themselves.
This is because they are free from the social pressure that is present on other platforms. Thus, they prefer this app over others.
The New York Times described the app as “the only truly enjoyable social network out there”. This comes from the fact that this app is filled with kindness. Likewise, the comments tend to be words of encouragement. Their users celebrate cultural exchange, body positivity, and diversity of thought.
What will happen to TikTok? Creativity for all:
Content creation has never been more intuitive, due to the plethora of video editing tools that TikTok offers.
The app has erased any kind of barrier that could prevent people from expressing themselves. Technical skills don’t determine the success of content on this app.
Thus, this means that almost everyone can provide something of value in this platform.
In the end, it seems like short and easy-to-make videos are going to become the future of interactive media.
A window into youth culture:
Reaching young people means moving at a faster pace. This means that, for marketers, this app can be one of the most effective ways to stay relevant.
In short, the actions taken by TikTokers can become trends in a matter of weeks or months.
Likewise, this can be useful to start movements and raise awareness about certain topics.
An example of this is the movement against climate change.
This movement, led by so many young people around the world, is spreading through TikTok with the hashtag #GlobalWarming.
What will happen to TikTok? Local niches and its global reach:
We know that this app brings the best of the global world, but also of local engagement. The application has grown a lot in Asian countries.
An example of this is India, which has over 120 million monthly active users. On the other hand, China has not fallen behind with its over 250 million users.
The global appeal of TikTok offers a unique opportunity for brands that want to attract travelers from all over the world. In this app, there’s a lot of niches.
This is thanks to the “For You” section, which adapts itself to the tastes or priorities of the user. Likewise, it recommends a wide variety of niches according to their tastes.
Everything is quick:
Despite its great potential, this app is still a very weak platform in terms of advertising. Until recently, the only way a brand had to advertise itself was by establishing a direct relationship with influencers.
TikTok’s advertising offer now includes features like native content, brand acquisitions, or sponsored hashtags.
Likewise, this app isn’t oversaturated by ads. This is something that sets it apart from platforms like Facebook, Instagram, or Twitter. Thus, brands can connect with what seems to be hard-to-reach people, like Gen Z. Nonetheless, there is still a long way to go.
For example, there are certain concerns about the platform’s consistency. This concern comes with the fact that only 29% of users connect daily, compared to 95% of rival social networks.
At the moment it includes very limited measurement tools. However, we must start taking it into account for our next marketing campaigns.
What will happen to TikTok? Does Twitter want to buy TikTok too?
Twitter shares are speculated to rise as much as 5% this Monday after preliminary talks were reportedly held with TikTok. This app, as we mentioned before, is in big trouble with the government of President Donald Trump.
According to a report, this app is worth billions of dollars. This raises the question of whether Twitter, with a market capitalization of around $ 30 billion, can afford the popular app.
What will happen to TikTok? In case they can get the resources to buy the app, Twitter’s small size could ease antitrust concerns.
For its part, Twitter previously owned another video app, Vine, but it shut down in 2017. Microsoft said it would finish talking to ByteDance no later than September 15 anyway.
That’s the date Trump set as the deadline for TikTok to find an American buyer. Failure to do so would lead to suspending the application in the country.
TikTok Celebrities Win Lawsuit against Trump’s TikTok Ban
TikTok has won yet another battle in its fight against the ban of its app in the United States. Last Friday, a federal judge in Pennsylvania issued a court order that blocked said restrictions. Thus, this is amazing news for the Chinese app since if it weren’t for this order, it would have to stop working in the US from November 12.
On the other hand, a group of content creators was at the forefront of this lawsuit. Some of them even interact with over a million people. These are, of course, their followers within this social media platform.
Some plaintiffs like Douglas Marland have 2.7 million followers on the app. Others like Alec Chambers have 1.8 million, and lastly, Cosette Rinab has 2.3 million. These influencers or “Tik Tokers” would lose contact with their followers had they won the ban by Trump. Not only that, but this ban would also make them lose the opportunities to generate income that this platform has.
Not the first time, and probably not the last
This is not the first time that the American courts have stopped the blocking of this app. Last month, a judge in the nation’s capital blocked a ban that would have removed the app from app stores run by Apple and Google.
In contrast, the Trump administration didn’t waste time and quickly carried out strategies to ban this app on the country. The said app, as we know, has its origin in china from the hand of the ByteDance Company. As a result, the government thought of it as “a threat to national security”.
However, some argued that “The government’s own descriptions of the threat to national security posed by the TikTok application are hypothetical”. In fact, these were the judge’s exact words when passing this ruling.
“We are deeply touched by the great support of our creators, who have worked to protect their rights of expression, their careers and help small businesses, especially during the pandemic”.
These were the words from Vanessa Pappas, Acting Global Director of TikTok, in a statement. “We support our community as they share their voices, and we are committed to continuing to provide a home for them to do so”. Added the global director.
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The United States Government has taken action, and Trump, who a few days ago proposed to veto the service in this country, now indicates that the operation should have a surprise gift from Microsoft: a commission for the sale.
In a surprising post published by Microsoft, they talked about how the call between Satya Nadella and Donald Trump had made them rethink their initial position. Likewise, they’re now in favor of the purchase. However, after that call, Trump said in an interview that he expects that some of the money from the sale ends up in the bank account of the US government.
What will happen to TikTok? In those statements made through the C-SPAN network, Trump explained how he and Nadella had “a great conversation,” and after discussing the issue, he came to a conclusion:
“I told him that” if you buy it, whatever the price is, that goes to whoever owns it, because I suppose it’s China, essentially, but more than anything, I said that “a very substantial part of that price is going to have to go to the United States Treasury. “ Because we are making this deal possible. Right now they have no rights unless we give it to them. So if we’re going to give them the rights, then they have to enter, they have to enter this country. “
Trump compared this situation to that of a homeowner and his tenant. “Without a rental agreement, the tenant has nothing”. According to the president of the United States, without his government, there wouldn’t be an agreement. Likewise, he aimed at a commission to facilitate the operation.
The president’s statement raises some important concerns for companies in the country. Suddenly, the United States becomes a state that demands a percentage of any sale within its territory.
Likewise, this situation has been heavily criticized by analysts and outlets such as The Wall Street Journal. They warn that this could create a dangerous precedent for buying foreign companies through administrative commissions.
What will happen to TikTok? In China, they will not accept “the theft” of TikTok
Microsoft doesn’t appear to have responded to those comments from Trump. Likewise, its officials set a September 15 deadline to make a decision on whether to continue with the purchase process or not.
The Redmond Company does not want to buy “all TikTok”, but only the service that affects the United States, Canada, Australia, and New Zealand, curiously leaving the United Kingdom out.
Meanwhile, Zhang Yiming, founder of ByteDance, the company that owns TikTok, indicated that he “understood the criticism” from the United States for the potential operation. “People have high expectations when they talk about a global company founded by someone from China and from which they have little information.”
For its part in China Daily, the newspaper directly associated with the Chinese government, the message was clear: China will not accept the “theft” of TikTok, and claimed that the country had “sufficient ways to respond” if the US government tried to force the sale.