The potential acquisition of TikTok is being explored by Oracle, Microsoft, and other investors amid a looming U.S. ban. Various parties, including Frank McCourt’s Project Liberty, have expressed interest, while Elon Musk’s potential bid is under consideration. Microsoft’s past bid fell through amid administration concerns, with TikTok’s valuation estimated between $40 billion and $100 billion, escalating interest from multiple bidders.
Recent discussions surrounding the potential acquisition of TikTok have emerged, highlighting interest from Oracle, led by billionaire Larry Ellison. According to NPR, Oracle and other U.S. investors, possibly including Microsoft, are considering a majority stake acquisition while allowing ByteDance to retain a minority stake. This proposition is still evolving after a similar attempt during 2020 fell through, with former President Trump commenting that he has never engaged with Ellison regarding this deal.
Additionally, Perplexity AI has submitted an offer to ByteDance for a merger with TikTok, aiming to allow existing investors to maintain their stakes. Chinese government officials are contemplating a sale to Elon Musk, who has fortified his connections with Trump recently, but ByteDance denied these speculation claims as mere fiction. Meanwhile, YouTuber MrBeast has expressed interest in purchasing TikTok to prevent a ban, sharing that several billionaires reached out to him about this initiative.
Internet advocacy group Project Liberty, headed by billionaire Frank McCourt, proposed a purchase of TikTok’s U.S. assets, rallying support from notable investors like Kevin O’Leary, who indicated a willingness to invest up to $20 billion. A former TikTok employee suggested Amazon as a potential buyer due to its strong advertising relationship with the platform. Rumble, another video-sharing platform, has also shown intent to acquire TikTok but has released no further information.
Bobby Kotick, the former CEO of Activision Blizzard, expressed interest in acquiring TikTok, discussing potential financial backing from OpenAI CEO Sam Altman and others. Former Treasury Secretary Steve Mnuchin has also plans to assemble a group to buy the app, indicating that many tech companies were approached regarding the sale and restructuring of TikTok’s algorithm, which ByteDance has indicated would not be available in any sale.
The U.S. government’s ban on TikTok, driven by national security concerns related to ByteDance’s connections to China, compels a sale to avoid the app being prohibited in the country. This ban will be enforced shortly unless ByteDance divests its U.S. operations; consequently, TikTok has contested the law, claiming that a sale is impractical from legal, commercial, and technological standpoints.
Microsoft’s past bid to purchase TikTok in 2020 almost reached completion before it was ultimately abandoned. Since then, Oracle and Walmart attempted a combined acquisition, which fell through following the Biden administration’s intervention concerning security risks. Financial experts have valued TikTok between $40 billion and $100 billion, factoring in its significant algorithm and user base, which continues to attract various bidders.
In summary, the possible acquisition of TikTok is gaining traction, with various major players, including Oracle, Elon Musk, and internet advocacy groups expressing interest in purchasing the platform. Following the U.S. government’s looming ban and national security concerns, the pressure grows on ByteDance to divest its U.S. operations. The value of TikTok remains high, indicating significant interest from numerous investors and companies aiming to navigate the political landscape surrounding the app.
Original Source: www.forbes.com
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