Broker Check

The sale of Tik Tok

| August 31, 2020
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The sale of Tik Tok has been closely followed by investors. It is looking like Walmart, Microsoft and possibly Apple are the front runners. Whatever company that buys it will have a marketing tool that has every young person under the age of 20 using it to make fun dances! The question I raise is if China was benefiting from the all the US data then why are they okay with the sale? Wouldn’t they want to keep stealing the data or at least have one of the biggest apps in the world on their home turf? I have not seen any type of retaliation from China with this sale. They usually go back om forth on most problems as before COVID we were locked in a trade war that would move the market on any news. And now no fight? The app is popular in china as well so wouldn’t they be worried about the US stealing data? Maybe they are letting it slide because of the recent pandemic but I cant imagine that being the case.

 

Another thing about the rise of tik tok made me realize how twitter really dropped the ball when they purchased Vine. They integrated the app into twitters basic features but after seeing the frenzy that is tik tok they definitely missed an opportunity to grow that app. Vine had its limitations with posts only being 6 second long but you would think that they would have known that they could have grown it more. They had the user base and branding. I still miss the app honestly. It also makes you think if twitter could ever be bought by someone bigger. I dont think its out of the question since LinkedIn and Instagram were purchased at a relatively high point in popularity. I believe the best fit would be with Microsoft as they would have LinkedIn and with the addition of tik tok they would capture every age demographic. They would also position themselves with more social media presence then apple. The sale seems like its coming soon and I can only imagine how they will utilize the app. I recently downloaded the app and it gives me the same vibes as vine did before they got sold off. Stale, repurposed boring content. That could be why twitter did what it did with Vine and whoever buys tik tok could be buying a dud. Anyway it happens, it will be interesting to see how that companies stock does that purchases it.

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