The possible ban of TikTok in the U.S. or its forced sale looms large as legislation moves swiftly through the House, potentially leading to the demise of the beloved app.
Concerns over data sharing with the Chinese government and the dissemination of potential propaganda have fueled the push for this drastic measure.
A recent bill, unanimously approved by the House Energy and Commerce Committee, caught TikTok off guard and sparked increased buyer interest, as reported by The Wall Street Journal.
Rep. Mike Gallagher co-authored the bill, which requires ByteDance, TikTok’s parent company, to divest or face a U.S. ban. Supported by President Joe Biden’s commitment, Gallagher aims for swift Senate action.
Former President Donald Trump, who previously advocated for banning TikTok, has shifted his focus to Meta Platforms Inc.’s Facebook instead.
In a post on Truth Social, Trump expressed his change in stance, remarking, “If you get rid of TikTok, Facebook and Zuckerschmuck will double their business.”
During a CNBC interview, Trump reiterated his opposition to banning TikTok, citing concerns that such a move would benefit Facebook, which he considers “an enemy of the people.”
TikTok perceives the bill as a de facto ban, rejecting the feasibility of separating its U.S. operations. American tech giants are eyeing acquisitions, with former Activision CEO Bobby Kotick expressing interest.
Kotick, discussing an acquisition over dinner at an Allen & Co. conference, explored potential partnerships, including with OpenAI CEO Sam Altman. OpenAI sees promise in utilizing TikTok to enhance its AI models, pending Kotick secures the necessary capital.
Strategizing Amidst Threat: TikTok was caught off guard by the swift progress of legislative efforts. The company, which pledges noncompliance with Chinese data requests, underestimated the bill’s rapid advancement internally.
With the bill advancing to the full House vote after committee clearance, TikTok’s 170 million American users are anxious about its fate. Seeing the bill as a backdoor ban, TikTok is exploring strategies to challenge the bill’s progression.
Considering opposition from senators concerned about free speech and business implications, TikTok is exploring avenues to halt the bill’s passage. Additionally, the company may challenge the bill’s constitutionality if signed into law by President Biden.