TikTok could well take a drastic decision if its situation in the United States were to deteriorate further.
The social network of short videos has been under pressure in the United States for many months, where one-off bans are linked. Its position in the world’s largest market always seems a bit trickier. To the point that a possible separation with ByteDance could be decided.
TikTok, a national security problem?
It is now fairly well known. US authorities are scrutinizing TikTok for its links to China, and especially the consequences of its use for the national security of the United States. For the moment, this examination does not really play in the favor of the application, to the point that the United States Congress is currently working on legal tools to possibly ban TikTok from the territory.
This would be a potential cataclysm for the application, which has nearly 130 million users across the Atlantic and is used enough to almost equal Netflix in average American viewing time. So the company prepares all the scenarios to avoid the worst, including the one, according to Bloombergof a divorce between her and her Chinese parent ByteDance.
40 to 50 billion dollars
This operation is obviously not the group management’s favorite option. It would only be activated in the event of a disagreement with the senior officials in charge of the national security of the United States. According to the same media, it would then take the form of a sale, or an IPO of the favorite application of 15-25 year olds.
Such a financial operation would mark the tech economy in view of the valuation of ByteDance, still recently estimated at 220 billion dollars. The separate entity that would be TikTok for the United States could be valued at between 40 and 50 billion dollars. This scenario would be reminiscent of the one where, at the end of 2020, Huawei separated from its Honor brand to avoid the latter being subject to US government sanctions. Are we heading for a repeat?
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TikTok is THE social network adored by Generation Z. It allows everyone to film themselves to music chosen from the large catalog on offer and to enhance their creations with filters and special effects. The platform is accessible from a web browser or via its dedicated Android and iOS application.
TikTok is THE social network adored by Generation Z. It allows everyone to film themselves to music chosen from the large catalog on offer and to enhance their creations with filters and special effects. The platform is accessible from a web browser or via its dedicated Android and iOS application.
Sources: Bloomberg, Reuters
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