As President Joe Biden signed legislation banning TikTok in the United States unless its Chinese parent company, ByteDance, sells the app, a race against time has begun for the social media platform to find a new owner. With 170 million US users, TikTok’s potential sale has attracted a wide range of potential buyers, including tech companies, retailers, private equity firms, and investment bankers. However, China’s commerce ministry has previously stated its opposition to any forced sale of TikTok, adding another layer of complexity to the situation.
Those most likely to face antitrust concerns if they were to acquire TikTok include established tech giants such as Meta, Google, Amazon, and Microsoft. Legal experts point to these companies’ existing antitrust issues as a potential obstacle to acquiring TikTok. The paradox is that while these dominant tech giants have the resources to purchase TikTok, they would also attract the most regulatory skepticism, making it difficult for them to clear antitrust hurdles.
Microsoft, having recently been involved in a major tech merger with the acquisition of Activision Blizzard, is seen as a potential contender for the ownership of TikTok. Microsoft previously pursued a deal to acquire TikTok in 2020, alongside Walmart, but the negotiations fell through. With TikTok’s future uncertain, those who had expressed interest in the past, including Oracle, may have another opportunity to enter the bidding process.
Former Trump Treasury Secretary Steven Mnuchin has also expressed interest in acquiring TikTok, putting together a team of investors for a potential bid. Mnuchin’s history of leading the Trump administration’s efforts to ban TikTok raises concerns about potential conflicts of interest. Other businessmen, such as Kevin O’Leary, have also expressed interest in acquiring TikTok, with potential bids ranging from $20 billion to $30 billion. Such acquisitions may need to exclude TikTok’s popular recommendation algorithm to navigate Chinese export restrictions.
The potential sale of TikTok presents a challenge for both the US government and potential buyers, as the fate of Project Texas, an initiative aimed at addressing US national security concerns by storing user data on Oracle-owned servers, hangs in the balance. As the clock ticks for TikTok to find a new owner, the uncertainty surrounding the platform’s future and the complex regulatory landscape raises questions about who will eventually take ownership of one of the most popular social media platforms in the United States.
