Shares of Microsoft Corp (NASDAQ: MSFT) today fell 2.16% extending yesterday’s decline even as the company works to acquire Chinese social media app TikTok, which has been sanctioned in the United States.
Investors and analysts alike are torn on whether the TikTok acquisition will work out for the tech giant, or whether it will be another failed project that costs Microsoft $50 billion.
The acquisition would plunge Microsoft into the murky waters of social media including the regulatory scrutiny that has fallen on Facebook and Twitter in the recent past.
Daniel Elman, an analyst at Nucleus Research said: “Combating misinformation will need to be a mission-critical priority. Microsoft will be new to this as it doesn’t have experience managing a high profile social network at this scale,”
Adding that: “…if any company can acquire or quickly develop the requisite skills and capabilities, it is Microsoft.”
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