Microsoft & TikTok: The Odd Couple (Part 2 of 2)
Microsoft & TikTok: The Odd Couple (Part 2 of 2) In the last post, I laid out the much-needed context to understand this acquisition in more detail. In this blog post, I will introduce the proposed deal structure and analyze the potential strategic benefits to Microsoft from this transaction and finally present my arguments as to why this may not be the best deal for Microsoft. Source: Techonomy By now it would seem clear why Microsoft’s interest in TikTok is unusual. For nearly half a decade, Microsoft has been focusing successfully on the unglamorous but highly profitable enterprise market and has managed to remain out of the headlines while growing the business successfully. Why does Microsoft now want to enter the muddy waters of a video-based social media platform that has been a lightning rod for political and regulatory scrutiny? To understand the acquisition, it is important to understand the proposed deal structure in a little more detail. The Complex Deal Structure
