Microsoft: The Obvious Acquisition Is Dropbox, Not TikTok

Here is the article. 

From a business perspective, Dropbox as a cloud storage platform may have been redundant for Microsoft, given its existing OneDrive offering. Over the past few quarters, however, Dropbox has expanded deeper into digital collaboration, having introduced features like Spaces (content management within teams), electronic signing, vault for secure document storage, among other features. In other words, Dropbox now brings more to the table than it used to, only a couple of years ago.

But maybe even more important, an acquisition of Dropbox would bring 600 million registered users to Microsoft - granted, some of whom probably overlap with Microsoft's existing user base. Because the tech giant might have quite a bit of cross-selling opportunities to explore, it may not take much for Microsoft to justify a bid for a user base of this size. For example, merely producing $1 extra in net earnings per year from each "potential high value target" user that Dropbox does not currently monetize could unlock more value than DBX is worth in the market today (here, I am simply applying an earnings multiple of 25x to $335 million in annual net income).