Microsoft is reportedly nonetheless concerned with buying the US division of social community TikTok, and in response to one analyst, that is really a good suggestion.
According to Wedbush analyst Daniel Ives, the deal makes “strategic sense”, saying for Microsoft this is able to be a “big bet on the consumer social media space, which the company has stayed away from over the last decade”.
“With TikTok, valued in the private markets at roughly $50 billion, currently facing criticism from the Trump administration and on Capitol Hill around potential national security concerns this could be the right partner at the right time in Microsoft,” Ives wrote in a notice to buyers.
Ives famous that buyers would take a while to get snug with this shopper path, however, with Azure progress flattening, that it might give Microsoft a brand new progress path.
“Its consumer strategy remains in flux and an aggressive acquisition (or strategic investment) of TikTok would be Microsoft throwing its hat in the ring and trying to compete with other tech giants such as Facebook in a new avenue of growth for the next decade for its consumer business.”
The deal is presently in flux resulting from considerations that the US Government would like to close TikTok down quite than see it promote its US stake, after President Donald Trump mentioned late Friday he opposed the deal.
It seems most analysts who cowl Microsoft assist the deal, with the inventory presently having a Strong Buy consensus scores 27 Buy scores versus 3 Hold scores, and with analysts suggesting Microsoft nonetheless has a further 10% share worth progress due this yr.
