DailySun
TikTok is on the brink of a potential shutdown in the U.S., which could impact approximately 170 million users due to escalating legislative restrictions.
The widely-used social media platform has until January 19 to sever ties with its Chinese parent company, ByteDance, or cease operations in the country. This impending ban arises from concerns about national security and could result in a considerable disruption for one of the most popular apps in America if the Supreme Court supports a controversial law.
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Reports indicate that, while the legislation mandates app stores such as Apple and Google to remove TikTok and requires U.S. cloud providers to stop hosting the app, the platform is gearing up for an immediate suspension of its services.
Rather than providing limited access to current users, TikTok plans to halt all operations within the U.S., redirecting users to a notice about the federal ban and offering options to download their personal data, as reported by The Information.
TikTok’s $50 Billion Stakes And Race Against Time
If ByteDance decides to divest TikTok’s U.S. operations, potential buyers might face a staggering valuation ranging from $40 to $50 billion, according to Angelo Zino from CFRA Research. This valuation mirrors the platform’s vast user base and revenue strength compared to its competitors.
Notably, potential bidders like billionaire Frank McCourt and Kevin O’Leary have expressed interest, albeit with significantly lower offers around $20 billion. Additionally, Bloomberg News hints at a bold alternative being considered by Chinese officials: Elon Musk, the owner of X, could acquire TikTok’s U.S. operations.
Battle Over Freedom of Speech
TikTok’s legal struggle emphasizes First Amendment protections, contending that banning the app infringes on free speech rights. However, pointed questioning from Supreme Court justices during last week’s oral arguments suggested skepticism towards TikTok’s stance.
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The potential shutdown occurs at a politically charged moment, as Donald Trump, a prominent opponent of the ban, prepares to return to the White House on Monday.
Amidst the uncertainty, TikTok has assured its U.S. employees that their “employment, pay, and benefits are secure.” In an internal memo disclosed by The Verge, the company confirmed that its U.S. offices would remain operational, even if services are temporarily paused.
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