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Viking

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Tiktok's latest drama:

 

https://uk.reuters.com/article/uk-china-bytedance-tiktok-exclusive/exclusive-china-would-rather-see-tiktok-u-s-close-than-a-forced-sale-sources-idUKKBN2622KX

 

"China would rather see TikTok U.S. close than a forced sale" ("Chinese officials believe a forced sale would make both ByteDance and China appear weak in the face of pressure from Washington")

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https://www.scmp.com/economy/china-economy/article/3101362/tiktoks-algorithm-not-sale-bytedance-tells-us-source

 

"ByteDance... will not sell or transfer the algorithm behind [TikTok] in any sale or divestment deal... [byteDance] will not hand out source code to any US buyer, but the technology team of TikTok in the US can develop a new algorithm”

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I feel MSFT around or below potentially 2021's 25x PE and a long steady growth road ahead, which is decoupled from the geopolitical tension and almost immune from the anti-trust trouble, is particularly attractive in this low interest env. It's not even that expensive next year compared with sp500 average, but I feel it's way better than most other companies in sp500

 

https://www.prnewswire.com/news-releases/microsoft-to-acquire-zenimax-media-and-its-game-publisher-bethesda-softworks-301134492.html

 

"Microsoft to Acquire ZeniMax Media and Its Game Publisher Bethesda" ($7.5bn cash, "franchises include The Elder Scrolls, Fallout, DOOM, Quake, Wolfenstein, and Dishonored")

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Starting with 42B FCF, assuming M* estimated 11% growth for 10 years, expected return is about 5% at current prices. This is no way cheap. I'd argue that most of the FAAAs are cheaper although MSFT maybe has a higher moat than some of them (and higher expected growth than Apple).

 

Disclosure: I have positions in FAAA and MSFT.

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