MGR eCommerce Edge Weekly | August, 2020
Top News This Week
Microsoft is Buying TikTok for $30 Billion, and it’s an Absolute Steal
After President Trump announced over a week ago that he would be banning TikTok from the US due to national security concerns, its parent company Bytedance has been in a frantic scramble to find an American buyer. That buyer looks like it will be Microsoft.
The rumored acquisition price will be $30 billion, which to put in perspective is less than 2% of Microsoft’s current $1.6 Trillion market cap. For something that is a marginal expense to them, they will now own the fastest growing and most culturally relevant social platform in the world at the moment.
As successful as Microsoft has been over the last decade, their biggest failing was to create/own any consumer platform in the mobile era. They failed with Windows phone, Nokia, Bing, and many other attempts.
Now however, they will own arguably the most important platform of the next five years. My guess is TikTok will be worth anywhere from $100-$200 billion within three years, so this acquisition is a no-brainer for small cost it will be to Microsoft.
Other Notable Links:
1. Disney is going DTC as they announce Mulan will release exclusively on Disney+ later this year – THE VERGE
2. A new eComm business model? Italic is creating a $100/year subscription that will allow customer to buy unlimited luxury items at cost – MODERN RETAIL
3. MSCHF has built a multi-million dollar brand with $0 spent on ads, how they are using viral stunts to acquire loyal customers – THE VERGE
Subscribe to MGR eCommerce Weekly and receive weekly news directly in your INBOX.