TikTok is edging closer to a sale, and Microsoft seems to be a top contender to take over the US operations of the Chinese looping video application owned by ByteDance. But, truth be told, it hardly makes any sense for Microsoft Corporations to consider buying TikTok. It would be way better if Twitter bought the application.
TikTok: The ‘Poisoned Chalice’ For Microsoft
The main argument to support Microsoft’s decision to buy TikTok is that it would help the software giant to get their groove back in the field of advertising and social media. But, the company had moved away from mainstream consumer advertising a long time back. This movement was, in fact, reinforced by Satya Nadella, the CEO of Microsoft, who was mainly involved in cloud and software businesses prior to joining the company.
Microsoft is brilliant at making devices and software for global businesses, but it lacks the expertise in dealing with a social media platform. In buying TikTok, Microsoft will not be playing to its strength. At present, Microsoft gets one-third of the annual revenues from more personalized computing, which was about 46 percent five years back.
So, founder Bill Gates, who has stopped playing an active role in the company at present, is not really off the mark in calling TikTok a ‘poisoned chalice’ for Microsoft.
An Opportunity for Twitter to Ramp up Its Game
Twitter Inc. makes more sense as a buyer for TikTok for more reasons than one. Going by the reports, the company even had preliminary discussions with ByteDance.
The reason why many are skeptical about Twitter purchasing TikTok is because of the previous history of the company, where it blew its chances with Vine. However, there have been so many instances where companies have failed to make their mark with their own product, only to struck gold on purchasing a similar service later.
For instance, if Google had given up after its Google Video service tanked, it would have never tasted the success it did after buying YouTube. So, the idea that Twitter would be wasting its money on buying TikTok is a wrong notion.
Twitter is in dire need of some new business strategies for the younger crowd. The accounts that have the highest followers on Twitter are mostly over the age of thirty, and none of those top names are hip enough for the younger crowd of below twenty-five years.
So, TikTok can be just what Twitter needs to extend its reach towards the younger crowd. It will not only broaden the user base of Twitter but also help advertisers that target this crowd. So far, Alphabet and Facebook seem to be the only way out for ad buyers and agencies who want to gain access to a wider audience.
Finally, the short-form videos are a lot more popular in the present times than what it was when Twitter launched Vine. Thus, Twitter has a better shot at nailing it this time than the last time.