Who will buy Tik Tok?

Many of you will be familiar with TikTok, the Chinese app that has long since gone viral around the world.

Behind TikTok is ByteDance, a Chinese multinational technology company based in Beijing and founded only in 2012. Why now, even in the financial sphere, is everyone talking about TikTok?

Today, September 15, 2020, is the final date granted by Trump for the sale of TikTok’s U.S. assets. The app registers 50 million daily active users in the United States alone. If the sale does not take place, the U.S. could ban the application in its territory. China accuses Americans of “economic bullying and temptation of political manipulation.” I would like to add that China has banned in its country youtube, Facebook and many others (in the image below just a small part), but that is another story.

Who will buy Tik tok?
Only some of the sites or apps banned in China. (wikipedia source)

So now what does ByteDance have to do? Of course sell, but to whom?

Microsoft, in partnership with Walmart, would be cut off from ByteDance. This is not good news for Walmart, which would have through TikTok certainly accelerated the catching up of the backlog against Amazon.

In the day yesterday (Monday) it seemed to be done with Oracle (ORCL). In fact, the stock rose 5 percent. ByteDance, however, reportedly abandoned the idea of outright sale (which could be valued at 50 billion) of TikTok to “pursue a partnership with Oracle” hoping in this way to avoid a ban on the app in the States. Even this deal, however, seems to have fizzled out according to CGTN, an English-language network of China’s state-run CCTV, citing unnamed sources.

The question of algorithms

The Americans want TikTok’s algorithms, however, which ByteDance does not want to give up as a result of new restrictions on Chinese technology exports. Closed doors then on artificial intelligence algorithms, and this could complicate negotiations with U.S. groups.

Who will buy Tik tok?

The question remains this: who could win TikTok? Trump seems unwilling to want to extend the divestment deadline set today, so it will be a last-minute race, like when in soccer people try to make a splash on the last day of soccer. But here we are not talking about one player, but billions of dollars at stake among several multinational corporations, and this could be complicated to resolve in a few hours.

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