A group of American finance and tech moguls are gearing up to make multi-billion dollar bids for popular social media app TikTok, following President Joe Biden’s directive for its Chinese owners to sell the platform. Among the suitors are notable names such as former treasury secretary Steven Mnuchin, former Activision Blizzard CEO Bobby Kotick, and billionaire investor Bill Ackman.
ByteDance, the Chinese parent company of TikTok, has been given a year to offload the app but has expressed reluctance to do so. One of the major hurdles for potential buyers is the uncertainly around acquiring the algorithm that makes TikTok so engaging for users.
The potential sale is expected to come with a hefty price tag, with ByteDance previously being valued at a staggering $220 billion. However, regulatory scrutiny from bodies like the Federal Trade Commission could pose challenges for the interested parties.
Despite the high level of interest, tech giants like Meta (formerly Facebook) and Apple are unlikely to make bids due to antitrust concerns. Mnuchin, in particular, has signaled his enthusiasm for acquiring TikTok, while Kotick’s tech industry experience makes him a strong contender.
Rumors suggest that Ackman is considering using a special finance vehicle to raise funds for a bid. Other potential buyers include tech companies like Oracle and Walmart, as well as individuals like Kevin O’Leary.
TikTok CEO Shou Zi Chew has vowed to take legal action to prevent any potential ban or divestiture, further adding to the uncertainty surrounding the app’s future. Whether TikTok will be sold, banned, or face political interference remains to be seen, leaving users and investors alike on edge about what lies ahead for the popular platform.
“Prone to fits of apathy. Devoted music geek. Troublemaker. Typical analyst. Alcohol practitioner. Food junkie. Passionate tv fan. Web expert.”