Few Serious Buyers Consider Acquiring TikTok Amidst Rumors

Photo : Reuters

TikTok, a very popular app for sharing videos, might be banned in the U.S. on January 19. This is because a law says TikTok has to sell itself or stop working in the U.S. The app belongs to ByteDance, a company in China. Many people want to buy TikTok, but ByteDance says it does not want to sell. Experts believe that the Chinese government will not agree to a sale that includes TikTok’s special formula, called the algorithm.

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However, there is still a chance TikTok could be sold before the deadline. Dan Ives, an expert, thinks TikTok could be worth more than $100 billion if it includes its algorithm. Without the algorithm, Ives says it would be worth $40 billion to $50 billion. He believes ByteDance and the Chinese government will not sell TikTok with its algorithm, because it is very important to how the app works.

TikTok’s lawyers say it’s impossible to separate TikTok from its special technology. They say if TikTok is sold without its algorithm, the app in the U.S. would not work well. The algorithm controls what people see on TikTok, and U.S. officials are worried that the Chinese government could use it to change the content in ways that are hard to notice.

Some famous people and groups want to buy TikTok. Frank McCourt, a businessman, wants to buy TikTok and make it more open to people. He says he wants people to have more control over their information and the way they use the app. He also wants to make TikTok open-source, so others can help improve it.

Kevin O’Leary, a popular investor, is also part of the group that wants to buy TikTok. Former U.S. Treasury Secretary Steven Mnuchin is also trying to gather investors to buy the app. Mnuchin was part of talks in 2020 when some companies like Oracle and Walmart wanted to buy TikTok for national security reasons.

Other people, like Elon Musk and Jimmy Donaldson (also known as MrBeast), have been mentioned as possible buyers of TikTok. But it is not clear if they are serious about buying it.

Donald Trump, who will be president again soon, has asked the U.S. Supreme Court to delay the law that would ban TikTok. This way, he could try to find a solution while he is president. The court will decide soon if the ban will be delayed.

Trump has not said exactly what he will do to help TikTok, but his team says he will try to save the app. If the law is enforced, Trump’s Justice Department will make sure TikTok follows the ban.

It’s still uncertain what will happen to TikTok in the U.S. in the next few days. Many groups are still thinking about buying it.