TikTok’s aspiring buyers are reportedly discussing four different options to formulate the shot video app’s acquisition from its China-based owner, ByteDance. The four ways comprise purchasing TikTok’s U.S. operations without key software after China stalled an agreement which could amount to $30 billion; licensing the app’s algorithm from ByteDance; seeking Chinese approval to pass on the algorithm to the acquirer of TikTok’s U.S. assets; or asking for a transition period from a U.S. national security panel overseeing the deal.
According to sources, TikTok shows technical and functional similarities with ByteDance-owned Douyin and reportedly shares technical resources with it and other ByteDance-owned assets. The owner has been in talks for selling TikTok’s New Zealand, North America, and Australian operations since the previous month, cite sources.
Currently, TikTok’s bidders and ByteDance are discussing four options to structure the acquisition. However, it is not yet clear as to which of the mentioned ways will be pursued. As per sources, the odds of an agreement extend amid TikTok facing a U.S. ban on September 20, provided no sale deal has been reached.
A TikTok spokeswoman has expressed that TikTok is loved by nearly 100 million people in the U.S. as it is a home for self-expression, connection, and entertainment. She has further highlighted that the platform is dedicated to spread joy amongst families and support the careers of those who create on its platform for several ensuing years.
As per reports, ByteDance has been searching for a buyer of TikTok assets by this week so that the deal can be finalized by the middle of the month and in compliance with the President’s order to dispossess those assets. The President had announced this order citing safety concerns regarding the personal data of U.S. citizens.
Of late, China has also updated its export control regulations to limit the sale of technology similar to the one used by TikTok. This has reportedly raised questions regarding whether TikTok would veto a deal and give prospective buyers, Oracle and Microsoft, a pause for thought.