President Joe Biden has signed legislation that could lead to the ban of TikTok in the United States unless its Chinese parent company, ByteDance, sells the popular app. This has set the clock ticking for TikTok to find a new owner quickly.
TikTok plans to challenge the law in court, but if unsuccessful, the company will need to find a suitable buyer. With 170 million users in the US, TikTok has become a significant challenger to established social media giants like Facebook.
The potential sale of TikTok has sparked interest from various entities, including tech companies, retailers, private equity firms, and investment bankers. However, the Chinese commerce ministry has expressed opposition to any forced sale of TikTok.
While there is no clear favorite bidder yet, legal experts and business analysts suggest that established tech giants with a large social media presence may face antitrust concerns if they attempt to acquire TikTok. This includes companies like Meta and Google, which are already under antitrust scrutiny.
Despite the challenges, potential buyers must have deep pockets and be prepared to navigate regulatory hurdles. Microsoft, which previously showed interest in acquiring TikTok in 2020, could be a contender given its recent success in overcoming antitrust scrutiny.
Former Trump Treasury Secretary Steven Mnuchin has also announced plans to assemble a team of investors to buy TikTok. However, his proposal to exclude TikTok's algorithm has raised concerns about conflicts of interest.
Other businessmen, such as Kevin O'Leary, have expressed interest in acquiring TikTok, suggesting opening bids ranging from $20 billion to $30 billion.
As the race to find a new owner for TikTok intensifies, the fate of the app and its coveted algorithm remain uncertain, with various potential buyers vying for the opportunity to acquire this popular social media platform.
