4:14 AM PDT 5/19/2020
"Ultimately, TikTok's ambitions toward disruption may be less than we had thought," writes Evercore ISI's Kevin Rippey.
With Chinese conglomerate ByteDance's fast-growing social media app TikTok naming Kevin Mayer, the Disney executive who oversaw the launch of streaming service Disney+, its new CEO late Monday, Wall Street analysts weighed in on the appointment and what it means for the broader sector.
Less than three years old, TikTok has been on the rise and aided by the novel coronavirus pandemic, surpassing 2 billion worldwide downloads in March. Mayer also will serve as COO of ByteDance.
"We likely gained some valuable insight about the strategic ambitions of TikTok by way of the company’s new CEO hire," Evercore ISI analyst Kevin Rippey wrote in a Monday evening report. "Ultimately, we think TikTok naming a well-tenured Disney executive as its CEO speaks more to a company looking to join the ranks of the media establishment rather than break them.
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