14 DAY TRIAL // Opinions are still divided on whether Microsoft should buy TikTok or not, with co-founder Bill Gates himself warning that it’s a risky move for the world’s number one software company.
But as far as former CEO Steve Ballmer is concerned, this is an exciting acquisition that would allow Microsoft to reinvest in the consumer space.
Microsoft has often been criticized for focusing too much on the enterprise, leaving consumers behind and reducing the efforts to improve products aimed at these users.
“There [are] successes and failures in the consumer business, and I think it’s important to remember you’ve got to keep trying new things in order to build new businesses,” Ballmer told CNBC.
The TikTok takeover is expected to be worth billions of dollars, and Ballmer says that depending on how much Microsoft ends up paying to purchase the social network, it could all be worth it simply because the software firm can eventually win big in the consumer market.
“Obviously it depends on the price. Price is important as well as whatever restrictions come with it from a government perspective, but I think it’s an exciting avenue for Microsoft to really increase its consumer base,” he said.
No user data concerns
What about the antitrust issues that a TikTok takeover could cause for Microsoft? There’s nothing to worry about here, Ballmer says, as Microsoft has what it takes to deal with any scrutiny, especially as it’s been through similar challenges in the past.
And of course, Microsoft buying TikTok would put an end to all speculation that China gets access to user data, Ballmer explains.
“If Microsoft was tight and cozy with the Chinese government, Microsoft’s business would be bigger in China,” he said. “If the Chinese market was as piracy-free as the rest of the world, if the Chinese market was as accepting of Microsoft’s enterprise services as the rest of the world, Microsoft would be really, I think, quite a bit bigger.”
Microsoft said TikTok user data would be moved to the US and stored in the country if the deal goes through. The company has set a September 15 deadline for an agreement.