TikTok’s potential $588 per user valuation in Microsoft deal
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Re: TikTok’s potential $588 per user valuation in Microsoft deal
#2I think the valuation depends on there being multiple buyers because, if Bytedance doesn’t sell, they’ll lose those valuable customers.
So, are there multiple suitors? If so, who? Facebook and Google probably are out because of fear the sale will be disallowed because of their market dominance.
Re: TikTok’s potential $588 per user valuation in Microsoft deal
#3“At a market cap of $755 billion (at point of writing) Facebook’s per user value is around $288. If Facebook is some leading indicator for the pinnacle of per user value for social media, then at $50 billion for the roughly 85 million American users, TikTok’s per user value would be $588.”
I think facebook would pay a hefty premium even above that; handing Microsoft a buzzing social media platform on a silver platter - with the weight of Microsoft's resources behind it. Surely Zuckerberg's nightmare manifest...and he has no real chance of trying to outbid - what with all the anti-trust press.
Re: TikTok’s potential $588 per user valuation in Microsoft deal
#4I think the valuation depends on there being multiple buyers because, if Bytedance doesn’t sell, they’ll lose those valuable customers. So, are there multiple suitors? If so, who? Facebook and Google probably are out because of fear the sale will be disallowed because of their market dominance.
>Facebook and Google probably are out because of fear the sale will be disallowed because of their market dominance.
Facebook okay, Google is not even a player in social networking unless you are referring to YouTube, since it is a video platform.
But I feel, fear of competition laws is not the major delimiter in the whole Tik-Tok sale fiasco; This is state initiated after all.
Re: TikTok’s potential $588 per user valuation in Microsoft deal
#5I think the valuation depends on there being multiple buyers because, if Bytedance doesn’t sell, they’ll lose those valuable customers. So, are there multiple suitors? If so, who? Facebook and Google probably are out because of fear the sale will be disallowed because of their market dominance.
>Facebook and Google probably are out because of fear the sale will be disallowed because of their market dominance. Facebook okay, Google is not even a player in social networking unless you are referring to YouTube, since it is a video platform. But I feel, fear of competition laws is not the major delimiter in the whole Tik-Tok sale fiasco; This is state initiated after all.
YouTube is huge social network but nobody refers to like it, but it has all of its characteristics.
Re: TikTok’s potential $588 per user valuation in Microsoft deal
#6Earlier quoted context omitted.
>Facebook and Google probably are out because of fear the sale will be disallowed because of their market dominance. Facebook okay, Google is not even a player in social networking unless you are referring to YouTube, since it is a video platform. But I feel, fear of competition laws is not the major delimiter in the whole Tik-Tok sale fiasco; This is state initiated after all.
YouTube is huge social network but nobody refers to like it, but it has all of its characteristics.
hmm you're right. I wonder why that is...maybe the percentage skew of content creators to consumers..I'm sure there's more to it too
Re: TikTok’s potential $588 per user valuation in Microsoft deal
#7“At a market cap of $755 billion (at point of writing) Facebook’s per user value is around $288. If Facebook is some leading indicator for the pinnacle of per user value for social media, then at $50 billion for the roughly 85 million American users, TikTok’s per user value would be $588.” I think facebook would pay a hefty premium even above that; handing Microsoft a buzzing social media platform on a silver platter…
Microsoft are one of Facebook's investors, although a relatively small one.
Re: TikTok’s potential $588 per user valuation in Microsoft deal
#8The most interesting thing about this deal outside the obvious political drama in my opinion is that this will change Big Tech landscape overnight.
Microsoft has done enterprise so well for so long but has always struggled on 'consumer tech' outside of its Windows OS. Acquiring a social media platform is going to catapault it into the heart of consumer tech.
Question is will TikTok be a parallell arm or will it help Microsoft's consumer tech ambitions for One Drive, Xbox etc?
Re: TikTok’s potential $588 per user valuation in Microsoft deal
#9The only thing is, TikTok will be an amazing advertising platform for the up and coming Gen Z.
I do believe its an absurd price though, Facebook is around $288 per user vs $588 here. If a platform that is very good at making money from Millenials, Gen X and even Boomers (all of these generations are established in their careers, and have far more money than Gen Z) is $288 per user how is this ever going to pay off?
Re: TikTok’s potential $588 per user valuation in Microsoft deal
#10I think the valuation depends on there being multiple buyers because, if Bytedance doesn’t sell, they’ll lose those valuable customers. So, are there multiple suitors? If so, who? Facebook and Google probably are out because of fear the sale will be disallowed because of their market dominance.
>Facebook and Google probably are out because of fear the sale will be disallowed because of their market dominance. Facebook okay, Google is not even a player in social networking unless you are referring to YouTube, since it is a video platform. But I feel, fear of competition laws is not the major delimiter in the whole Tik-Tok sale fiasco; This is state initiated after all.
Player or not I hope YouTube take a page from TikTok. Their recommendation algorithm is abysmal (my opinion of course, and the opinion of many people I've talked to; anecdata, but given that I've never heard anyone saying they're hooked on YouTube recommendations, while I've heard tons of people hooked on TikTok's, I'd say there's at least some truth in this claim) and hasn't seemed to improve at all for the past, I don't know, five years? And they seem to only care about pushing their subscription increasingly more aggressively, while shoving more mid-roll ads into non-subscribers' streams (these days there are sometimes ten ad breaks in a twenty-minute video, think about it). Sad really.