 "TikTok could soon be sold: What's next for Chinese app in the US?")
In a twist of fate, the countdown has begun for TikTok, the popular social media platform, to secure a new guardian in the United States (US).
President Joe Biden's endorsement of crucial legislation on Wednesday marked the end for the app in the country unless ByteDance, its Chinese overseer, arranges a sale. With TikTok preparing for a legal battle to challenge the law, the stakes have never been higher.
That raises the question: What lies ahead for TikTok, and who will emerge as the saviour for this digital favourite, boasting an impressive 170 million users in the US alone?
As TikTok scrambles to find a buyer, speculation swirls in the corridors of power about potential suitors, including tech giants, retail moguls, and the enigmatic world of private equity.
However, amidst this frenzy, a significant obstacle emerges: China's firm opposition to any forced sale of TikTok, as stated unequivocally by the Chinese commerce ministry.
Who could buy TikTok?
With the stage set for a high-stakes bidding war, legal experts and business analysts are divided on the frontrunners. Established tech giants like Meta and Google, despite their financial prowess, are considered unlikely candidates due to the spectre of antitrust scrutiny that would inevitably follow. The ongoing antitrust battles against Meta and Google only add to the challenge.
More From This Section
Jasmine Enberg, a principal analyst at Emarketer, told CNN, "Any potential buyer must have deep pockets and a strong stomach. While many would want to get their hands on TikTok's coveted algorithm, most of those who could afford to buy the app wouldn't be able to clear antitrust hurdles."
Meanwhile, former suitors may seize the opportunity to reignite old interests. Microsoft, fresh from its success in acquiring Activision Blizzard, could be ready for a second attempt at courting TikTok. Memories of its previous bid in 2020, alongside Walmart, are revived as TikTok's future hangs in the balance.
ALSO READ: US banning TikTok? Everything you need to know about the controversy
ALSO READ: US banning TikTok? Everything you need to know about the controversy
A wildcard enters the fray
In a move that caught many by surprise, former Trump Treasury Secretary Steven Mnuchin proposed an ambitious plan to gather a group of investors to rescue TikTok from its plight.
Mnuchin's bold bid, purportedly excluding TikTok's prized algorithm, has generated speculation and drawn scrutiny for potential conflicts of interest.
However, critics quickly highlighted the irony- Mnuchin, who spearheaded the Trump administration's initial campaign against TikTok, now seeks to benefit from its turmoil. Such manoeuvres risk controversy and place Mnuchin in opposition to his former superior, Donald Trump, who holds influence over the burgeoning Truth Social platform.
Among the varied group of interested parties stands Kevin O'Leary, the Canadian tycoon and chairman of O'Leary Ventures, proposing a bid ranging from $20 billion to $30 billion, with the condition of excluding TikTok's algorithm.
As the clock winds down, TikTok's future hangs in the balance, with numerous contenders competing for the opportunity to wield its influence in the ever-evolving realm of social media dominance.