Facebook's competition continues to gain traction. TikTok, the lip-syncing social app was downloaded more than 315 million times in the first quarter of 2020, making it the most downloaded app in a single quarter – ever.
Facebook can be criticised for a number of things – but a bad acquisition strategy is not typically one of them. Buying WhatsApp for $19bn in 2014 was a phenomenal sequel to the $1bn acquisition of Instagram in 2012 – which at the time had no revenue and just 12 employees.
Facebook executives missed TikTok acquisition – despite holding talks with them back in 2016. At the time called Musical.ly, TikTok was eventually snapped up by Chinese company ByteDance for $800m in 2017 - which after some phenomenal growth now works out at an acquisition price of about $1per active user.
If your parents are on Facebook – you go where they aren't – and they aren't probably on TikTok. Almost 70% of TikTokers are under the age of 25, while just 30% of Facebook users are.
Despite being a lot 'cooler' than Facebook - TikTok is actually desperately trying to grow up and appeal more to adults... and of course, brands which they can eventually monetise.