Senate Passes Bill Requiring Sale of TikTok by Chinese Owner, ByteDance

The Senate passed a bill that would force a sale of TikTok by its Chinese owner, ByteDance, or ban it outright, citing national security concerns. President Biden signed the bill into law, sparking a complex process that is likely to face legal challenges and resistance from Beijing.

TikTok, with its 170 million U.S. users, has vowed to challenge the law in court, arguing that a forced sale could violate users’ free speech rights. The company has a history of successfully fighting similar legal battles, including attempts by the Trump administration to ban or sell the app.

The sale of TikTok is expected to come with a hefty price tag, limiting potential buyers to those with deep pockets. Tech giants like Meta or Google may be blocked from acquiring the app due to antitrust concerns, leaving private equity firms or investors as potential buyers.

Even if TikTok is sold, the process of separating it from ByteDance is expected to be messy, with challenges around the app’s recommendation algorithm, which is owned by ByteDance. The Chinese government could also play a role in blocking the sale, as it has previously expressed opposition to such a move.

Overall, the future of TikTok in the United States remains uncertain, with legal battles, potential buyer limitations, and geopolitical tensions all playing a role in the app’s fate.