TikTookay, owned by the Chinese firm ByteDance, has been on the middle of controversy within the U.S. for 4 years now because of issues about consumer information probably being accessed by the Chinese authorities. Earlier this yr, the app skilled a short lived outage within the U.S. that left hundreds of thousands of customers in suspense earlier than it was rapidly restored.
TikTookay returned to the App Store and Google Play Store in February.
Nonetheless, TikTookay’s future stays unsure, and a possible second ban on April 5 is looming. Plenty of traders are competing for the chance to buy the app, and if a deal had been to undergo, the platform’s U.S. enterprise might have its valuation soar to upward of $60 billion, as estimated by CFRA Research’s senior vp, 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 varied authorized battles and negotiations.
The drama first started in August 2020, when Trump signed an government order to ban transactions with mum or dad firm ByteDance.
A month later, Trump’s administration sought to pressure 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 quickly blocked Trump’s government 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 offered or banned. In response, TikTookay sued the U.S. authorities, difficult the constitutionality of the ban and arguing the app and its American customers had been having their First Amendment rights violated. The firm has persistently denied that it poses a safety risk, asserting that its information 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 court docket submitting, stating he might discover a option to preserve the app within the U.S. This stance was a stark distinction to his method throughout his first presidency and offered a shocking 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 seemingly should 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 this time
On January 20, Trump signed an government 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 purpose is to realize a 50-50 possession association between ByteDance and a U.S. firm.
More lately, in early March, Trump informed reporters that his administration was in talks with 4 completely different teams which can be concerned with shopping for the platform, per Reuters.
No definitive deal has been reached but for the sale of the platform, however we might discover out very quickly.
Below is a listing of the investor teams and firms rumored to be potential patrons of TikTookay’s U.S. operations. (Surprisingly, Elon Musk shouldn’t be 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 be the previous proprietor of the Los Angeles Dodgers. Investment agency Guggenheim Securities and the regulation agency Kirkland & Ellis are serving to to assemble the bid. The primary mission of The People’s Bid to accumulate TikTookay is to prioritize privateness and information management, taking an open supply method.
Supporters concerned embody:
- Alexis Ohanian: The Reddit co-founder is the latest tech entrepreneur to affix The People’s Bid, taking up the function of strategic advisor. He joined on March 3.
- Kevin O’Leary: A well known investor and tv character who beforehand informed Fox he was prepared 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 information,” Berners-Lee mentioned in an announcement.
- 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 accumulate TikTookay’s U.S. operations.
- David Baszucki: Tinsley informed 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
- Amazon: The e-commerce big is the latest firm reported to throw its hat into the ring.
- Bobby Kotick: The former CEO of Activision is reportedly concerned with shopping for TikTookay. With his expertise managing a significant gaming firm, his curiosity within the app could possibly 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 concerning the potential buy of TikTookay.
- Oracle: The firm beforehand made a bid for TikTookay again in 2020. In entrance of the White House in January, Oracle co-founder Larry Ellison mentioned to Trump that fifty% possession “appeared like an excellent deal.” The Information reported in March that Oracle is the best choice to function the cloud expertise companion for serving to TikTookay run within the U.S.
- Walmart: The retail big may be eyeing TikTookay to boost its attain in e-commerce, particularly contemplating the platform’s affect on client purchasing habits. Walmart first expressed curiosity again in 2020.
- Microsoft: The tech big has beforehand proven curiosity in buying TikTookay, and Trump talked about that the corporate has lately reentered the bidding to purchase the app.
- Rumble: The YouTube different introduced on X that it needs to accumulate TikTookay and function its cloud expertise companion.
- Perplexity AI: The AI search engine startup submitted a bid final month, in accordance with CNBC.
The story has been up to date after publication to incorporate new events.
