TikTok has multiple options in the coming months, even as the Senate is poised to pass legislation tonight forcing it to be sold or face a ban.
Why it matters: After years of threats, the U.S. is preparing to follow through on its threats to ban TikTok.
But once President Biden signs legislation, the company still has options:
- First up, fight in court: TikTok plans to file a lawsuit on First Amendment grounds once the bill is signed by President Biden, Axios Pro Tech Policy reporter Ashley Gold tells me.
- If that fails, wait out the election: Chinese-owned company Bytedance will have up to a year to divest from the app, according to this version of the bill. The company could hope for a change of heart by whichever party has control after November, especially now that Trump has flip-flopped.
- As a last resort, rush through a shotgun divorce: ByteDance could establish TikTok (or at least TikTok U.S.) as an independent company with its own stock, as Axios Pro Rata author Dan Primack has written.
The bottom line: The Chinese government is a wild card here, as it can block any sale — or water it down by refusing to allow a TikTok sale to include its famous algorithm.
