TikTookay, owned by the Chinese firm ByteDance, has been on the heart of controversy within the U.S. for 4 years now as a consequence of issues about person knowledge doubtlessly being accessed by the Chinese authorities. Just this previous month, the app skilled a brief outage within the U.S. that left thousands and thousands of customers in suspense earlier than it was shortly restored.
TikTookay returned to the App Store and Google Play Store final month.
Nonetheless, TikTookay’s future stays unsure, and a variety of traders are competing for the chance to buy the app. The platform’s U.S. enterprise may have its valuation soar to upward of $60 billion, as estimated by CFRA Research’s senior vice chairman, Angelo Zino.
TikTookay ban: What’s occurred thus far
To totally perceive this high-stakes drama, we’ll first revisit the timeline of TikTookay’s tumultuous relationship with the U.S. authorities, which resulted in numerous authorized battles and negotiations.
The drama first started in August 2020, when Trump signed an govt order to ban transactions with mother or father firm ByteDance.
A month later, Trump’s administration sought to power a sale of TikTookay’s U.S. operations to a U.S.-based firm. The main contenders included Microsoft, Oracle, and Walmart. However, a U.S. choose briefly blocked Trump’s govt order, permitting TikTookay to proceed working whereas the authorized battle unfolded.
Things started to progress much more final yr following the transition to the Biden administration. The U.S. House of Representatives, in an amazing 360-58 vote, handed the laws in opposition to TikTookay. On April 23, 2024, the Senate handed the invoice.
Shortly after, President Joe Biden signed the invoice requiring TikTookay to be bought or banned. In response, TikTookay sued the U.S. authorities, difficult the constitutionality of the ban and arguing the app and its American customers have been having their First Amendment rights violated. The firm has constantly denied that it poses a safety risk, asserting that its knowledge saved within the U.S. complies with all native legal guidelines.
Trump has a change of coronary heart
On December 27, 2024, Trump opposed the potential ban of TikTookay in a courtroom submitting, stating he may discover a option to hold the app within the U.S. This stance was a stark distinction to his method throughout his first presidency and offered a stunning flip of occasions for TikTookay.
In January, the U.S. Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), generally known as “the TikTookay ban.” TikTookay made a proper announcement that it might probably must go darkish on January 19.
TikTookay shuts down … then comes again on-line
Although TikTookay certainly shut itself down within the U.S. when the act got here into impact, it didn’t final lengthy. The app got here again on-line lower than 12 hours later. The platform famous, “As a results of President Trump’s efforts, TikTookay is again within the U.S.”
Where we’re at the moment
On January 20, Trump signed an govt order that postponed the TikTookay ban for 75 days. This extension supplies the app with extra time to both promote a stake within the platform or attain an settlement with Trump. His objective is to attain a 50-50 possession association between ByteDance and a U.S. firm.
No definitive deal has been reached but for the sale of the platform, however we may discover out very quickly.
Below is an inventory of the investor teams and firms rumored to be potential consumers of TikTookay’s U.S. operations. (Surprisingly, Elon Musk just isn’t amongst them.)
The People’s Bid for TikTookay
The People’s Bid for TikTookay is a consortium organized by Project Liberty founder Frank McCourt, who can also be the previous proprietor of the Los Angeles Dodgers. Investment agency Guggenheim Securities and the legislation agency Kirkland & Ellis are serving to to assemble the bid. The fundamental mission of The People’s Bid to amass TikTookay is to prioritize privateness and knowledge management, taking an open supply method.
Supporters concerned embrace:
- Alexis Ohanian: The Reddit co-founder is the newest tech entrepreneur to hitch The People’s Bid, taking over the position of strategic advisor.
- Kevin O’Leary: A well known investor and tv persona who beforehand advised Fox he was keen to purchase TikTookay for $20 billion. O’Leary joined The People’s Bid on January 6.
- Tim Berners-Lee: The inventor of the World Wide Web helps the proposal as a result of “customers ought to have a capability to manage their very own knowledge,” Berners-Lee mentioned in a press release.
- David Clark: A senior analysis scientist on the MIT Computer Science and Artificial Intelligence Laboratory, Clark has additionally been named a participant.
American Investor Consortium
Jesse Tinsley, the CEO and founding father of Employer.com, is main a consortium of American traders. Last month, Tinsley introduced a $30 billion all-cash supply to amass TikTookay’s U.S. operations.
- David Baszucki: Tinsley advised Bloomberg that the Roblox co-founder and CEO is a participant.
- Nathan McCauley: The co-founder and CEO of crypto platform Anchorage Digital has been confirmed to be collaborating within the consortium, Bloomberg reported.
Other events
- Bobby Kotick: The former CEO of Activision is reportedly curious about shopping for TikTookay. With his expertise managing a significant gaming firm, his curiosity within the app might be pushed by the potential to combine gaming and social media.
- Steven Mnuchin: The former U.S. Treasury Secretary who served throughout President Trump’s first time period has reentered discussions in regards to the potential buy of TikTookay.
- Oracle: The firm beforehand made a bid for TikTookay again in 2020. In entrance of the White House final month, Oracle co-founder Larry Ellison mentioned to Trump that fifty% possession “appeared like a great deal.”
- Walmart: The retail large may be eyeing TikTookay to reinforce its attain in e-commerce, particularly contemplating the platform’s affect on shopper procuring conduct. Walmart first expressed curiosity again in 2020.
- Microsoft: The tech large has beforehand proven curiosity in buying TikTookay, and Trump talked about that the corporate has not too long ago reentered the bidding to purchase the app.
- Rumble: The YouTube different introduced on X that it needs to amass TikTookay and function its cloud expertise accomplice.
- Perplexity AI: The AI search engine startup submitted a bid final month, in keeping with CNBC.
The story has been up to date after publication to incorporate new events.
