Honestly, this sounds like a great outcome for everyone.
Western users get assurances their privacy will be respected as much as any other western company (not great, but not Tencent levels of government interference/monitoring etc).
Microsoft get's a massive jump-start into social.
Consumers maintain a competitive social-media landscape.
I like the apolitical aspect of TikTok, it's a breeze of fresh air and entertainment compared to other social medias. If Microsoft acquired it we could expect the same political agenda pushed on us and the same censorship we get on fb, Twitter and YouTube. Oh well, it was good while it lasted I guess.
Can't the same arguments be made for something like having Huawei sold to Cisco or something? i.e. it's a great outcome for everyone except the target party.
Professionally, LinkedIn is a social media network they own.
Personally, MS has also invested in Facebook.
Among the young segment, TikTok could be an interesting way to explain/educate beyond social media. Microsoft has social-learning video based tools that could be similar to TikTok, or could become related.
I don't work for MS, just what I see from a distance.