Wall Street has a new parlor game. I guess the next owner of Tiktok.
President Trump signed the presidential order in January and delayed the execution of the law that banned popular video apps. Under the order, the app must be sold to non -Chinese owners by early April.
Since he signed the order, Trump has dropped off the tips that are sometimes inconsistent about how the next week will be deployed. He suggested that he wanted a bid war. He says that the United States should own a part of the app. He named Microsoft and Elon Musk as a potential buyer, even if others raised their hands.
However, the potential sales mechanism is still ambiguous.
Tiktok owners have many years that the Chinese government has not been able to sell apps for years because the Chinese government does not allow very important algorithm exports.
It is not clear that Tactoku's American investors are interested in sales.
“There are many alternatives that can talk to President Trump and his team. Bill Ford, the leading executive of the Atlantic General, told CNBC. 。
Next, we know what will happen next::
Who wants to buy Titoku?
Trump has recently published many names, including Musk, Microsoft and Oracle. In 2020, Microsoft, Oracle, and Walmart tried to buy Tactoku before these lectures collapsed.
Other potential bidders include Jesse Tinsley, the founder of the salary company Employer.com.
Kevin Oriy, a star of the “Shark Tank”, was part of a bidding from the billionaire Frank McCort, and was trying to buy a Tactoku without a desire algorithm. The $ 20 billion of his bankers is considered much lower than what Tiktok can be acquired with recommended technology.
According to Spokesman Matthew Hillzik, the YouTube star, Beast, has also said that “several potential bidders” will also be a strategic partner for acquisitions. (As some reports have guessed, his role is not to provide funds to the purchase.)
Of course, Musk purchased a Twitter called X in 2022. The Chinese government may want to sell more happily, given that Tesla is doing sufficient business in China. However, the billionaire does not comment on whether he wants to buy Tactoku.
Microsoft refused to comment. Oracle and Musk did not respond to the comment request.
Tiktok and bytedance do not comment on whether they are engaged in sales talks.
Who will lead the negotiations for transactions, and why?
Mr. Trump has held a court for contract talks, and it is unlikely that everyone will try to attack transactions without much confidence in supporting transactions. Ford, the Atlantic General, said in Davos that he would negotiate with Mr. Trump and Secretary Scott Vessent.
Ford said that Bessent and the Bait Dance Board of Dance and his management would be part of the discussion, and explained that his company was “ready for engaging.”
It is also important to be convinced that deal makers are receiving support from the Chinese government. China is resisting to abandon Tactoku's control. The export control rules were updated in 2020 so that the key to the key algorithm export to enable tiktok was possible to block. Some of the potential buyers like McCourt want to buy Tiktok without algorithm, but they say they will buy a significantly reduced product.
What did Trump say what he wants?
Any transaction requires Trump's approval, and he said he was eager to accomplish one. He told the reporters last month, “I had a lot of interest.”
He outlined the contours of the kind of transaction he wanted to attack.
On Monday, Trump signed a presidential order to establish a US Soblinwealth Fund, suggesting that a fund could become a potential investor in Tactoku.
However, it is unknown whether such a structure will solve the national security concern that leads the parliament to pass the law. Advertising. It is also unknown how the United States can become an investor.
The law is illegal to update or distribute Tiktok in the United States unless a company has a qualified sale of the app from the ordinance. Specifically, Tactoku states that it cannot maintain an operation relationship with China or a controlled company in China.
What did the investor say?
The law states that Tiktok has become unable to rely on Chinese companies to be controlled by Chinese companies or to share the recommended algorithms or data.
However, as the comments from the Atlantic General Ford show, investors are looking for options to avoid complete sales. Analysts say that the transactions forced by political pressure will probably demand the value of investment rapidly.
However, other options that include introducing new investors and exchanging investments with US Titoku shares in the United States, deal with the national security issues specified by the law. Is not clear. The law prohibits Chinese or people from directly or indirectly retaining more than 20 % of Tactoku.
What gets in the way of sales?
Even Tiktok has important questions raised in the court's application. If it is separated from global infrastructure, can Tiktok US business be operated? Tactoku stated that such sales were not “commercial, technical, or legally executed.” This is because China is unlikely to allow US buyers to take over Tactoku's algorithm. This is also because many Tiktok's technical infrastructure are housed outside the United States.
Also, large -scale technology companies like Tiktok in 2020 have been spending billions of large -scale technology companies, such as Microsoft, who tried to buy Tiktok in 2020, since then. I have promised. According to analysts, the acquisition of Tiktok will be a major change in strategy.
Buying a social media company is often a tricky proposal, considering how fast it will not be supported. Once a very popular SNAP among teenagers, it is traded when the price sold in new stocks in 2017 is below the price.
Buying Tiktok is also expensive and you can buy it. And if you buy an app, you will probably face the exclusive prohibition law, such as Google or Meta.
Is it the same if Tiktok sells?
I don't know. Sales may solve the legal problem of Tiktok, but it may change the app that users know today.
Some Tiktok users have suggested that Tiktok could change under a new leader, just as X was converted under Musk's ownership in the past. In the case of X, many users and advertisers escaped from the app.
