Do you think TikTok will sell its U.S. stake? + Quick summary
Just to make it clear:
In 2022, it became public that TikTok (or rather its parent company ByteDance) had used the app to monitor the communication of journalists in the U.S.
After that revelation, the U.S. government under Biden attempted to ban TikTok; the ban was approved and took barely 24 hours. 😀
Then Trump revoked this ban and extended the period during which the US and Chinese TikTok somehow concluded to some agreement, so the solution was that the share would be bought by American companies, and they (the US) would have control over the data. Trump is up for this agreement; we still wait for China.
[Oracle, Silver Lake, and Abu Dhabi-based MGX will get a 45% stake in TikTok’s US company.]
Do you think that China will agree with the TikTok sell-off?
One small test: How many of you use TikTok as a marketing channel for your company that drives your sales?
MY POV: I think it will pass, but it's still pretty shady considering that TT (Bytedance) has a problem selling something when they want to stay in the market (they are not saint). :D I've seen with several companies that most companies have bet on this network and are making a lot of money from it, e.g. David Park with Jenni AI. And there are many small creators from the US who have TT like a source of income. In case, that the agreement will not be signed, it can cause that EU will follow this case as well.
Replies
I think a full sell-off is unlikely, China will resist losing control over something as strategic as TikTok. A partial stake sale (like Oracle/Silver Lake) seems more realistic, since it gives the U.S. some data oversight without ByteDance fully letting go.
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@ritik_ranjan There is a partial sell-off, but China is still hesitating.
@busmark_w_nika Absolutely. That hesitation makes sense, TikTok isn’t just a business; it’s a strategic asset. A partial sell-off provides a compromise, but full control remains a sensitive issue for China. It’ll be interesting to see how this plays out.
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@ritik_ranjan Maybe they will not confirm this kind of agreement :D
@busmark_w_nika I also don’t think so. The politics around it are too complex, and full confirmation seems unlikely anytime soon.
Cal ID
A complete sell-off feels very unlikely. China rarely gives up control over such a valuable company.
A partial sale (like the Oracle/Silver Lake deal) seems much more realistic, giving the U.S. some data oversight while still letting ByteDance keep a hand on the wheel.
If there’s no deal, I can predict more friction and maybe even similar moves from the EU down the line. For marketers and creators, it’s a reminder not to be dependent on TikTok. The platform risk is real, no matter how good the channel has been for growth.
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@sanskarix That's the reason why I am so hesitant to invest some time into the platform. What if it is banned... my effort will be lost.
Honestly, if it was few yrs ago, it could have been an easy pass if handled properly. Now, even if it's passed, the result will be far far away from initial goal that USA wanted.
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@rickyguo As I know, the US wanted to ban them completely (Under Biden's administration), but for Trump it is a very useful tool for his propa ehm ehm marketing.
@busmark_w_nika Actually, got not much interest talking about politicians like Biden(who needs to check out his pants regularly lmao) nor Trump(who is currently trying to run the country and its global impact just like the way Friedrich Trump was running his business on 19th century).
As for the tiktok deal and all the strategy, the plan, the prediction, the counter prediction, the stuff....well, all I know is it's going to be sth that worth talking a lot while having lunch with friends in private :)
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@rickyguo aaa got you, stealth convo! :D