Microsoft and Twitter’s acquisition plans present pros and cons for TikTok

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August 12, 2020, 1:59 AM UTC

Twitter acquiring TikTok would be a more seamless culture fit.

As Microsoft plans to acquire TikTok, the ByteDance company is also being pursued by Twitter for takeover. Microsoft’s acquisition could provide TikTok with technical support and bolster its reputation in the US. But, Twitter and TikTok could be more aligned in terms of advertising.  

Microsoft could process TikTok’s algorithm and ad serving and help the company achieve its revenue goals if it treats the acquisition as revenue play, states, Humphrey Ho, of Hylink. However, Microsoft’s past troubles of managing ad-supported businesses could pose a challenge for the company.

Doug Rozen of 360i says with TikTok being on the edge of an ad breakthrough, its acquisition from any of the players should have the company prosper like Instagram. Amanda Martin of Goodway Group believes that both acquisitions “present hurtles.”

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