
TikTok is on the verge of a potential shutdown in the U.S., which could impact approximately 170 million users as legislative restrictions escalate.
The widely-used social media platform has until January 19 to sever ties with its Chinese parent company, ByteDance, or cease operations nationwide. This prohibition stems from national security concerns and could result in a major disruption for one of America’s most popular applications if the Supreme Court validates a contentious law.
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As reported, the legislation compels app stores like Apple and Google to remove TikTok, along with U.S. cloud providers to cease hosting it, while the platform is gearing up to suspend its services immediately.
Instead of offering limited access to current users, TikTok intends to halt all operations in the U.S., leading users to a notification about the federally mandated closure and offering options to download their personal data, according to The Information.
TikTok’s $50 Billion Stakes And Race Against Time
If ByteDance decides to sell TikTok’s U.S. operations, potential buyers could be eyeing a staggering valuation of $40–$50 billion, according to Angelo Zino from CFRA Research. This valuation reflects the platform’s large user base and robust revenue compared to its competitors.
Noteworthy potential bidders, such as billionaire Frank McCourt and Kevin O’Leary, have expressed interest, albeit at a significantly lower offer of $20 billion. Furthermore, Bloomberg News suggests a bold alternative being considered by Chinese officials: Elon Musk, the owner of X, could take over TikTok’s U.S. operations.
Battle Over Freedom of Speech
TikTok’s legal challenges emphasize First Amendment protections, claiming that a ban on the app infringes upon free speech. However, pointed questions from Supreme Court justices during recent oral arguments suggested skepticism towards TikTok’s claims.
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The potential shutdown comes at a politically charged time, with Donald Trump, a notable opponent of the ban, set to re-enter the White House on Monday.
In the midst of uncertainty, TikTok has assured its U.S. employees that their “employment, pay, and benefits are secure.” An internal memo disclosed by The Verge confirmed that the company’s U.S. offices will continue to operate, even if services are temporarily paused.
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