Smiley face
Weather     Live Markets

President Joe Biden recently signed legislation that would ban TikTok in the U.S. if its Chinese parent company, ByteDance, does not sell the app. TikTok has announced plans to challenge the law in court, but if unsuccessful, the company will need to find a buyer quickly. With 170 million U.S. users, TikTok has become a rising challenger to other social media giants, raising the question of who the U.S. government may deem a suitable owner.

The possibility of TikTok being sold is likely to spark a feeding frenzy among potential buyers, including tech companies, retailers, private equity firms, and investment bankers. However, China’s commerce ministry has previously stated its opposition to any forced sale of TikTok, adding another layer of complexity to the situation. While there is no consensus on a preferred bidder yet, legal experts and business analysts suggest some candidates may be more likely than others.

Established tech giants with a strong social media presence, such as Meta and Google, would face significant antitrust concerns if they were to acquire TikTok. Experts believe companies like Amazon, Microsoft, Intel, Cisco, Oracle, Verizon, or AT&T may face less scrutiny from antitrust regulators. However, the paradox remains that only the largest tech giants may have the resources to purchase TikTok, while attracting regulatory skepticism may be an issue for them.

Microsoft, which recently overcame antitrust scrutiny in acquiring Activision Blizzard, could be in a position to strike a deal with TikTok. Microsoft was a contender to buy TikTok in 2020 before negotiations fell through, and the fate of Project Texas, an initiative to store U.S. user data on Oracle-owned servers, is now in question. Former Trump Treasury Secretary Steven Mnuchin has also expressed interest in buying TikTok, though there are concerns about a conflict of interest given his past involvement in the Trump administration’s efforts to ban the app.

Critics have raised concerns about Mnuchin potentially using confidential information acquired during the ban efforts to enrich himself and his associates. Other businessmen, such as Kevin O’Leary, have also shown interest in acquiring TikTok, proposing bids between $20 billion and $30 billion. If TikTok is sold, it could potentially change the competitive landscape of social media platforms and have broader implications for data privacy and national security interests. Ultimately, the fate of TikTok remains uncertain as the clock ticks for the company to find a new owner.

Share.
© 2024 Globe Timeline. All Rights Reserved.