The social network TikTok, famous for its short and viral videos, is once again in the spotlight. This follows an executive order issued by former President Donald Trump, granting ByteDance, the Chinese company that owns the app, an additional 75 days to sell its U.S. operations. The measure aims to prevent a possible total ban on the app, citing national security concerns. According to NBC News, TikTok could be valued at $50 billion, attracting significant interest from major figures in the business and tech world.
Potential Buyers for TikTok
Among those showing interest are:
Jimmy Donaldson (MrBeast): The content creator and entrepreneur publicly expressed interest in leading a bid to acquire TikTok.
Elon Musk: The owner of X (formerly Twitter) may consider integrating TikTok into his vision for digital platforms.
Larry Ellison: The chairman of Oracle, a company already hosting TikTok’s U.S. data, is also among the potential bidders.
Startups like Perplexity AI: These tech companies have also expressed interest in partnering with TikTok, according to Bloomberg.
Why Does TikTok Need to Sell in the U.S.?
The pressure on TikTok arises from a U.S. law prohibiting Chinese companies from controlling apps that handle sensitive data from American users. According to NBC News, the main concern is that the Chinese government could use this data for espionage or manipulation.
In 2020, the Trump administration attempted to ban TikTok, but legal challenges halted the process. Now, ByteDance has two clear options:
- Sell TikTok to a U.S. company.
- Reduce its stake in the platform.
Valued at an estimated $50 billion, TikTok is not just a global success but also a lucrative opportunity for investment in sectors like advertising and e-commerce, according to analysts at Wedbush Securities.
What Will Happen to TikTok’s Algorithm?
The core of TikTok’s success is its algorithm, known for delivering highly personalized content. This makes it a critical piece in negotiations. According to analyst Dan Ives from Wedbush Securities, there is uncertainty about whether ByteDance would include the algorithm in the sale.
One solution might be for ByteDance to propose a strategic partnership, retaining some control over the technology. However, this decision would depend on the approval of the Chinese government, which typically protects its technological innovations.
China Softens Its Stance
The Chinese government appears willing to allow a partial sale of TikTok. According to Mao Ning, a spokesperson for the Ministry of Foreign Affairs, Beijing might accept the sale as long as it does not compromise the nation’s technological sovereignty.
This more flexible position comes amid economic and technological tensions between the U.S. and China. Some analysts believe this sale could be a strategy to ease political pressure without completely relinquishing control of TikTok.
What Changes Could a New Owner Bring?
Although no deal has been reached yet, several scenarios are being considered:
- Increased e-commerce presence: ByteDance has already implemented this strategy successfully in Asia, and a new owner could replicate it in the U.S.
- Clearer privacy policies: Some experts believe a new owner could introduce measures to improve data security and transparency.
The future of TikTok will largely depend on who takes control, but one thing is certain: it will remain one of the most influential social networks in the world.
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