If a deal can’t be reached by Microsoft with Tik-Tok then it will be a huge loss for Fastly.
An acquisition by Microsoft though can only mean good things as they have been very successful with stepping out of their comfort zone in the past… EG: LinkedIn, Xbox, Minecraft etc.
Majek also notes that ByteDance/TikTok is one of the largest customers for the content-delivery network Fastly (FSLY), and that growth in usage in recent weeks and months should be a boost to Fastly’s second-quarter results. “If a potential acquisition falls through and TikTok ends up being banned in the United States, it would present a near-term headwind for Fastly,” he writes. Faslty reports June quarter results on Wednesday.
See full article by Eric J. Savitz here:
“TikTok could become a big source of revenue for Fastly as the short-form media platform rises among the social-networking ranks, according to analysts. TikTok parent ByteDance “spends a sizable amount” with third-party content delivery networks like Fastly, Akamai Technologies Inc. and Limelight Networks Inc., Raymond James analyst Robert Majek said in a report following an industry conference earlier this month.”
June 24. BLOOMBERG.
I could not find an answer to % of revenue but above is another recent quote.
Keeping this non-political, if an attorney on the board such as Tinker could weigh-in about the legal ability of banning Tik-Tok in the US, it would be great put that potential concern to rest, and greatly appreciated. Thank you in advance.
From their 10k filed in March:
Our customer base
consists of a large number of geographically dispersed customers diversified across several industries. To reduce risk, we routinely assess the financial strength of our
customers. Based on such assessments, we believe that our accounts receivable credit risk exposure is limited. No customer accounted for more than 10% of revenue for the
years ended December 31, 2019 and 2018, or more than 10% of the total accounts receivable balance as of December 31, 2019 and December 31, 2018.
This is a nonissue. Besides, even if MSFT did acquire TikTok USA, there is no assurance they would keep their existing CDN relationships.