TikTok's parent company, ByteDance, is currently engaged in intensive talks pertaining to a potential deal, revealed a board member.
At a recent Axios-sponsored event in Davos, Switzerland, General Atlantic CEO Bill Ford, a ByteDance board member, expressed that keeping TikTok active is in everyone's best interest. He suggested that negotiations between ByteDance, the Chinese government, and the US government could commence as early as the end of the week. Ford mentioned that all parties involved must participate in these discussions, and solutions other than divestiture are possible.
President Donald Trump, following his inauguration, signed an executive order delaying the TikTok ban for 75 days. This action prevents the Department of Justice from enforcing the Foreign Adversary Controlled Applications Act, which was passed with broad bipartisan support in Congress and signed by former President Biden in April. The law required TikTok to sell to an American or allied company by January 19, 2023, or face a nationwide ban.
Trump has expressed his interest in a 50% stake sale and even named Elon Musk and Larry Ellison as potential buyers. Michelle Phillips and Jimmy Donaldson, known as MrBeast, have also placed bids for TikTok for undisclosed sums. Despite these developments, the app's long-term future in the US remains uncertain. It's unclear if ByteDance would even consider selling, even with a Trump-brokered deal.
Negotiations are in limbo, with the Supreme Court upholding the law requiring divestiture or a ban. ByteDance faces challenges in divesting its holdings due to the technical and commercial complexities involved. The US government maintains its stance on national security concerns, while legal and free speech issues continue to be debated. Legal scholars have raised concerns about the law's impact on free speech, likening it to a significant speech restriction without a compelling justification.
The tech industry is closely watching the ongoing business negotiations surrounding TikTok, with potential buyers like Elon Musk and Larry Ellison showing interest. Despite Trump's push for a 50% stake sale, ByteDance's decision to divest or not is uncertain, given the technical and commercial complexities involved.
