$50B for TikTok sounds a lot. I am wondering how they want to keep TikTok attractive for the audience. Would it hit a similar fate as Snap?
Isn’t Vine a better comparison to TikTok, instead of Snap?
Comparing their current metrics, no.
ByteDance investors value TikTok at $50B in takeover bid
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Re: ByteDance investors value TikTok at $50B in takeover bid
#22Many are suggesting that TikTok would be overvalued at $50B. If that's the case, do you believe FB is overvalued at $662B? Instagram, as of 2018, was estimated to be worth around $100B on its own (with about 1b MAUs, versus TikTok's 800m). TikTok seems at least equally addictive, and its algorithm does a fantastic job at quickly showing good content that matches your interests.
.. and how's the revenue?
Good question - TikTok generated $176.9m revenue in 2019, but it's still in its infancy in terms of generating revenue.
Instagram, acquired for $1b in 2012, had $0 revenue.
WhatsApp, acquired for $19b in 2014, had $10.2m revenue.
Based on TikTok's usage-per-day and active users being comparable to Instagram, they could presumably generate ~similar revenue if focused on it.
With these types of apps, growth comes first, and profitability comes later (and the profitability step seems to come easily, unless FB cannibalizes you).
Re: ByteDance investors value TikTok at $50B in takeover bid
#23Earlier quoted context omitted.
No, it's going to be bigger. I know most people dont use snap but they use tiktok. Everyone young uses tiktok. It's much bigger than snap could have ever hoped. TikTok is FAANG tier company. If I were the founder, I'd go the Chinese government and ask them to ban Tesla and put tariff on Apple in retaliation. Tell the U.S. to play free market like they claim. Or lost access for it's companies. TikTok deserves it's suc…
I really doubt Tiktok's founder has that sort of leverage/power over the Chinese government. The current Chinese regime makes rational decisions, I doubt they'll think banning Tesla and Apple in order to protect Tiktok is worth it from a cost/value ratio point of view. Huawei is way more valuable to the Chinese government, and they didn't ban US companies in retaliation either.
TikTok will serve the purpose to Chinese government that Hollywood served for America's elite. It's worth every penny for softpower.
Re: ByteDance investors value TikTok at $50B in takeover bid
#24Many are suggesting that TikTok would be overvalued at $50B. If that's the case, do you believe FB is overvalued at $662B? Instagram, as of 2018, was estimated to be worth around $100B on its own (with about 1b MAUs, versus TikTok's 800m). TikTok seems at least equally addictive, and its algorithm does a fantastic job at quickly showing good content that matches your interests.
In my personal experience, Instagram ads are shockingly good (they often hit me with something that I actually want) and Tiktok ads shockingly bad (I've never seen one I didn't swipe through immediately).
Obviously Tiktok and their advertisers will be doing a lot of work on this, and they've only just begun, but I really wonder about the efficacy of the medium for ads. It seems like a much more difficult forum for that. Even youtube ads I've heard are often cheaper than fb/google ads, perhaps because the video format is so challenging for advertisers to get right (plus it's expensive to produce good creative).
Re: ByteDance investors value TikTok at $50B in takeover bid
#25Earlier quoted context omitted.
OR could follow Snap fate?
No, it's going to be bigger. I know most people dont use snap but they use tiktok. Everyone young uses tiktok. It's much bigger than snap could have ever hoped. TikTok is FAANG tier company. If I were the founder, I'd go the Chinese government and ask them to ban Tesla and put tariff on Apple in retaliation. Tell the U.S. to play free market like they claim. Or lost access for it's companies. TikTok deserves it's suc…
> Everyone young uses tiktok. It's much bigger than snap could have ever hoped.
Interestingly, you'd think that, but it's dead wrong. I'd say about a quarter of people actually use tick tock, compared to almost all using instagram or snap chat. There's a "subculture" of people that use it and are massively active, and most others don't use it at all. This strikes me as a massive impediment to tick tock's growth in America: it's entirely captured a specific group but has made essentially no inroads with any other.
> It's not a monopoly.
This is a straw-man; no one is saying it is. People are saying it's a national security risk.
> Virtually all of its "privacy violations" are the same violations done by Google, Facebook.
Well, I'm less sure of what tick tock does with data than either of those, so maybe better the devil you know? The concern is that at least at least FAANGs can be sued in a court of competent jurisdiction, whereas tick tock is based in an autocracy that is deeply opposed to the concept of freedom and means to make itself the foremost world power by any means necessary.
Re: ByteDance investors value TikTok at $50B in takeover bid
#26If you look at the graphs in this article on the use and explosive popularity of TikTok you can see that TiKTok currently dwarfs all other social media in the US market wrt. downloads, time spent in app pr user, user growth.
https://www.ft.com/content/c6a8b9bc-dd6d-46a7-b008-825568982...
TikTok’s rampant growth strikes wrong note with US
Re: ByteDance investors value TikTok at $50B in takeover bid
#27Many are suggesting that TikTok would be overvalued at $50B. If that's the case, do you believe FB is overvalued at $662B? Instagram, as of 2018, was estimated to be worth around $100B on its own (with about 1b MAUs, versus TikTok's 800m). TikTok seems at least equally addictive, and its algorithm does a fantastic job at quickly showing good content that matches your interests.
Apps are easy to install... and easy to uninstall. Where's Snapchat these days? What about Vine? What about tumblr? These companies make apps to try to monetize a community, but communities are fickle and easy to scare off. If I were an investor, I'd value these apps for the computers in their offices and the code their developers write and that's it. Maybe $100mil if you get me on a good day. You can't value them fo…
Snapchat is growing revenue at over 30% a year.
Vine was bought by Twitter and shut down. Tumblr was bought by Yahoo and suffered the same fate as everything Yahoo buys.
Re: ByteDance investors value TikTok at $50B in takeover bid
#28Many are suggesting that TikTok would be overvalued at $50B. If that's the case, do you believe FB is overvalued at $662B? Instagram, as of 2018, was estimated to be worth around $100B on its own (with about 1b MAUs, versus TikTok's 800m). TikTok seems at least equally addictive, and its algorithm does a fantastic job at quickly showing good content that matches your interests.
50B is low; only meaningful because the US government is holding a gun to TikTok's head.
Re: ByteDance investors value TikTok at $50B in takeover bid
#29$50B for TikTok sounds a lot. I am wondering how they want to keep TikTok attractive for the audience. Would it hit a similar fate as Snap?
$50B sounds like a lot, especially in the face of pressure from the US and a lot of people leaving the platform due to privacy reasons. We've also learned from Snap at this point not to overvalue social media. I think they really should take the $1B offer and go.
A $33b company should take a $1b offer?
Re: ByteDance investors value TikTok at $50B in takeover bid
#30Earlier quoted context omitted.
No, it's going to be bigger. I know most people dont use snap but they use tiktok. Everyone young uses tiktok. It's much bigger than snap could have ever hoped. TikTok is FAANG tier company. If I were the founder, I'd go the Chinese government and ask them to ban Tesla and put tariff on Apple in retaliation. Tell the U.S. to play free market like they claim. Or lost access for it's companies. TikTok deserves it's suc…
I really doubt Tiktok's founder has that sort of leverage/power over the Chinese government. The current Chinese regime makes rational decisions, I doubt they'll think banning Tesla and Apple in order to protect Tiktok is worth it from a cost/value ratio point of view. Huawei is way more valuable to the Chinese government, and they didn't ban US companies in retaliation either.
> they didn't ban US companies in retaliation either
That's probably because they've already been banning American companies for years if they posed any potential thread to Communist control.