Facebook, Inc (NASDAQ:FB) hasn’t yet started taking seriously the competition that TikTok poses. This is easy to tell, considering that the social media guru hasn’t yet listed it among its rivals. However, Twitter Inc (NYSE:TWTR) and Snap Inc (NYSE:SNAP) have already documented TikTok as a rival in their financial documents.
TikTok and its aggressive approach to business
TikTok happens to be an upstart social media app and is closely linked to major tech giants in China. It is growing quite fast, and Zuckerberg has, in numerous instances, admitted that it is doing quite well. TikTok seems quite ambitious because it has lately been poaching some employees that work at Facebook. It has been paying rates almost similar to facebook to the new employees. This has been enticing them a huge deal. Others say that they are proud to be associated with such a fast-growing and dynamic company.
The Chinese-owned company has been very busy in recent times. It has lately taken up an office space that was earlier occupied by Facebook’s WhatsApp messaging app. This is an office space found in Mountain View, California. Market observers think that there is a reason for Facebook to worry about the new competitor.
The raging business competition
This is a competition on two fronts. Firstly, the two companies are competing over winning over the young users to their respective platforms. Secondly, TikTok is fast gaining presence from users around the Menlo Park headquarters of the Social media guru.
Reports indicate that it was back in 2017 when a Chinese company known as ByteDance unveiled TikTok. The new company focuses on the creation of a Douyin, which happens to be an app enabling users to create videos. Facebook isn’t speaking quite much about this competitor. However, its actions seem to be insinuating something controversial. Facebook, at some point, moved ahead to develop Lasso. This was an application with a lot of similarities to TikTok. The only difference between the apps of these two companies is the download statistics. Facebook reports that its Lasso has so far been downloaded by about 420,000 users from around the globe.
TikTok says that it has already set aside the funds it will use to upgrade its Culver City headquarters. If all goes as planned, it might be moving in over the coming year. This place will be able to hold about 1000 employees that will be working for it.