Copyright: EPA
In the world of business, the likelihood
that a sale of TikTok will happen still looks a long way from reality.
The bill faces uncertain prospects in
the Senate and with both China and owner ByteDance opposed to a deal, a legal
fight is almost certain.
But analysts say there are plenty of
potentially interested buyers in the US – especially from the tech and shopping
worlds – if it comes to that point, given TikTok’s rapid growth.
What deal might ultimately pass muster is another question, given anti-monopoly concerns weighing on the tech sector
and the likely high price.
“All the big social media companies would be
interested but I think they would face a lot of anti-trust hurdles,” Emarketer analyst Jasmine Enberg tells me. “There are
other firms in the social media space that are smaller – like Snapchat – that would
be interested but wouldn’t be able to afford it.”
When the Trump administration ordered a
sale in 2020, some of the biggest firms in the country emerged to explore bids,
which then reportedly valued the firm at about $50bn.
Microsoft ultimately lost
out to a team that included Walmart and software giant Oracle, led by Larry Ellison and Safra Catz, who was cosy
with the Trump administration. But the deal fell apart amid legal
challenges and the change-over to a new administration.
Today, TikTok’s reach and advertising
revenue have increased significantly. Research firm Emarketer estimates TikTok
will bring in about $8.66bn in advertising revenue from the US this year,
compared to less than $1bn in 2020.
Source: bbc.co.uk
