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TikTok parent ByteDance follows Meta’s risky footsteps

ConsumerGeniuses

ConsumerGeniuses

TikTok’s parent company, ByteDance, is following the Meta company and assembling hardware, software, platform, and content similar to that of the metaverse. ByteDance has signed up for a risky journey, as the Metaverse has been a risky venture, evidenced by its $10 billion loss in 2021 from metaverse-related investments and a subsequent downward spiral of its share price. Although it is believed that the next chapter of the internet with be 3D and experienced-based, no one is sure how and when will people buy virtual headsets. Compared to Facebook’s acquisition of the Oculus, a virtual headset maker, for $2 billion, ByteDance bought a Chinese VR headset manufacturer named Pico for 9 billion yuan ($1.4 billion). If the bet turns out as expected, the initial risk-takers like Meta and ByteDance would be the biggest goldmines. However, the alternative outcome could have a negative impact on the companies’ performances, threatening their future.

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