Art of the deal – Microsoft swoops for TikTok

Report Overview

Art of the deal – Microsoft swoops for TikTok

Already a Subscriber? Login here to view Full Report

Art of the deal – Microsoft swoops for TikTok

Microsoft hopes to buy TikTok from Chinese owner ByteDance before President Trump’s Executive Order halts transactions with the company in mid-September. Twitter is now in the game, but is unlikely to prevail
Worth tens of billions, TikTok would be the biggest acquisition in Microsoft’s history. This hot new digital platform has hundreds of millions of users and an ad business that could overtake Snapchat’s. Extracting the technology from ByteDance may take years
Selling TikTok to shake off anti-Chinese scrutiny would signal ByteDance’s abrupt exit from the digital world stage with a fabulous return on its investment, while letting TikTok users continue to enjoy the service. However, losing TikTok sinks the global growth story that ByteDance was lining up for its anticipated IPO

Contents

TikTok’s monetisation potential

Trump dunks TikTok―Microsoft floats a rescue

What’s in the deal?

What if the deal fails?

List of charts/tables

Figure 1: Cumulative downloads of social apps, 2018-2020 (m)

Figure 2: Revenue by geography ($ millions)

Figure 3: Branded Hashtag Challenge, June 2020

Figure 4: Anti-TikTok regulatory action available to Trump