Despite the allegations thrown at the Facebook’s CEO Mark Zuckerberg during the antitrust hearing where he admitted that the company has been adapting features from other apps, Facebook did not hold the launch of its new Reels on Instagram. The debut made a significant stock rise of 12% on two days after it was launched.
Reels that was launched by Facebook on Instagram is another feature similar to the short video maker app, TikTok. Its functions include capturing videos for 15 seconds and accompanying music for backgrounds. Facebook has been working hard to make Reels possible. There are speculations about Facebook paying TikTok influencers to ditch the app and use Reels instead.
However, despite speculations, it could not stop the launching of Instagram Reels, which upsurge the co-founder of Facebook’s net worth crossing the $100 billion thresholds. He even became part of the 'centibillionaire's club' joining Bill Gates of Microsoft and Jeff Bezos of Amazon. Zuckerberg, 36, also holds the title for being the youngest centibillionaire in the world.
The youngest centibillionaire used his cards well as he drew the Ace on time. TikTok, that could be Reels' biggest rival has been facing lots of difficulties. The 3rd most downloadable app alleged of being used by the Chinese government to gather data from other countries. Despite its reassurance that they are not a propaganda app, several countries are still threatened by the app. India already banned the app as well as other Chinese apps, and Japan is also looking into it.
Moreover, the Chinese owned app was also currently banned in doing business with American investors as per the executive order of President Trump. However, the TikTok app was reported to take legal actions in response to the U.S government's decision.
TikTok's downfall is a door of opportunity for some like Facebook and even other market giants such as Microsoft. The former CEO of Microsoft Bill Gates, who still owns an estimated stake of 1.4%, is also planning to grab the opportunity made by the Chinese app. The company is planning to acquire the services of the embattled app. However, it will not be an easy task since the U.S government has been against the acquisition of the Chinese owned app.
Apparently, Facebook and its CEO has been the only U.S giant who succeeds in benefiting from the downfall of TikTok. However, those other giants will not stay still without gaining something from it.