TikTok’s loss is Meta’s win

Published On Dec 7, 2024, 10:43 AM

A U.S. appeals court ruling that upholds a law requiring TikTok's parent company, ByteDance, to sell the app or face a ban in the country presents a significant setback for TikTok. If the law takes effect, millions of TikTok users and content creators could be affected, potentially resulting in them migrating to competitors like Meta, which owns Instagram and its Reels feature, designed to compete directly with TikTok. Meta has seen increasing engagement in Reels, which contributes positively to its revenue. As TikTok users are likely to shift to Meta if the app gets banned, Meta stands to gain significantly from this situation.

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The ruling against TikTok is expected to drive users and advertisers towards Meta's platforms like Instagram Reels. This migration could bolster Meta's revenue, as its Reels feature is already gaining popularity. Advertisers are likely to follow content creators migrating from TikTok, providing additional revenue streams for Meta.

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