Microsoft co-founder Bill Gates described TikTok's potential deal with the tech giant as a poisoned chalice. In a broad interview with Wired, Gates made it clear that Microsoft's acquisition of parts of TikTok will not be easy or simple: "Who knows what will happen to this business," says Gates. "But yes, it is a poisoned cup." He also noted that being a big player in the social media business "is not a simple game", as Microsoft will have to deal with a new level of content moderation.
Asked if Gates fears that Microsoft will enter the social media game, he suggested that Facebook having a little more competition is "probably a good thing", but that "having Trump killing the only competitor is very bizarre" .
Gates seems as confused as the rest of us about how this potential TikTok deal is going, especially with President Trump suggesting that the U.S. Treasury will need some kind of cut in any takeover. "I agree that the principle by which this is occurring is singularly strange," says Gates. '' The cut is doubly strange. Either way, Microsoft will have to deal with all of that. ''
Gates's comments came just days after Microsoft confirmed it was seeking an agreement to buy TikTok's operations in the United States, Australia, Canada and New Zealand. The reports also suggested that Microsoft may be considering buying all of TikTok's global operations, with the Financial Times suggesting that negotiations around this specific deal are in a '' preliminary '' stage.
President Trump also said last week that he was one day away from banning TikTok in the U.S., before setting the September 15 deadline for Microsoft to complete its potential acquisition and avoid banning TikTok.
It is a complicated business that would give Microsoft a large presence in the social media space with the risk of being part of a bigger trade war between the US and China. Gates is clearly concerned about the acquisition, but we are about a month away from seeing if it will come true.