The clocking is now officially ticking on the Bytedance-owned vertical format social media app, TikTok. After the US senate passed the bill asking the app to either find itself a new parent company, that is not Bytedance or face a blanket ban in one of its largest markets, the USA the social media appears to be in a predicament.
The company on its side has claimed, that it would not sell off its business, and its would rather leave the country, that selling its business to an American corporation. But, pragmatism is a paradigm, that would make someone swallow those words without any thought. US is one of the largest market for the platform, that currently does not exist in two of the most demographically significant markets of China and India (after being in service, the app was banned in India in 2020).
Many analysts estimate the value of the platform, along with its unique algorithm to be around USD 100 billion, double the price of what Musk paid for Twitter, now X, at USD 44 billion. | Pixabay
A blanket ban in US would not only result in the app losing a large market, but also face a the consequences of a potential domino-effect, wherein, other nations follow suit.
Therefore, one needs to look at the possibility of some of the potential buyers of app. Apart from individual names like Elon Musk, Steve Mnuchin and Bobby Kotick, the major focus here would be on corporations, with the required muscle power to buy the app.
Many analysts estimate the value of the platform, along with its unique algorithm to be around USD 100 billion, double the price of what Musk paid for Twitter, now X, at USD 44 billion. Therefore, apart from institutional commitments, money is a prime, and perhaps a more influential factor.
The Behemoths of Tech World
First on the list would be the most valued company in the world, Microsoft, the American-giant with a valuation of over a gargantuan USD 3 trillion, could bag the vertical format app to expand itself directly into the communication business. In addition, its other avenues, particularly, its AI investment through OpenAI could be aided, with a significantly voluminous tranche of data, that could further the progress of their AI projects.
Then comes, another multi-trillion dollar American-tech giant, Apple. The California-based company, with its immense financial muscle power could buyout the whole platform, just with its available physical cash reserves. This potential acquisition in addition to its existing portfolio of Apple Music, Apple TV and its array of gadgets, could allow it to further consolidate its 'Apple Paradigm' that it has often been accused of constructing, wherein the users are bound by Apple products, one way or the other.
Meta, in case of a potential acquisition, would end up controlling all the major social media platforms around the globe. | Representational Image File
Google or Alphabet, as its parent company is officially known, is another player, who could look to consolidate the sphere of video consumption, by purchasing TikTok. The company, that currently has YouTube and its own YouTube Shorts, designed for vertical video content would not only potentially subdue the competition, but also reinforce itself in the search engine market, as many in today's day get their news and information from TikTok.
Finally in the pure tech world, we also have Mark Zuckerberg's Meta. Meta, in case of a potential acquisition, would end up controlling all the major social media platforms around the globe. This long list of powerful portfolio consists of WhatsApp, Facebook, Threads and of course, Instagram. With Instagram reels, in combination with TikTok, Meta could capitalize and dominate the vertical content market, cornering YouTube Shorts in the bargain.
The Sellers and Traders
Two other interesting names, that have emerged are not players who are direct participants of the social media game, but could leverage a potential acquisition in their favour. We are of course referring to Amazon and Walmart (Who could buy the app separately, not to be mistaken for a joint bid). Two arch-rivals, whose individual effort to buyout TikTok could expand their company's horizons. Both in the business of commerce, could use this platform, to reach out to a younger audience, that is the larger user-base of TikTok, and optimize a social media platform to advertise, and exponentially drive means to sell their inventory, thereby expanding potential customers.
Finally, it remains to be seen, as to what could happen, possibilities, as they say, are endless, and TikTok, in all possibility could still sue the bill and retain status-quo. Irrespective of what happens, it could result in a paradigm shift.
