TikTok is considering selling itself to avoid a US blockade, but without its most important asset

Yesterday Joe Biden signed the 21st Century Peace through Strength Act, which includes what is informally known as “Tik Tok Law”. With the signature of the US President, the popular video app’s clock began ticking. ByteDance has 9 months to sell the social network to a new owner; If you don’t, it will be illegal in this North American country.

Of course, TikTok will not sit back and wait for the US blockade. The platform issued a strongly worded statement arguing that the rules are unconstitutional and that it plans to challenge them in court. One of their arguments is that the veto violates users’ free speech, which is protected by the First Amendment to the US Constitution.

While all this is happening, something else is brewing behind the scenes. Reportedly Information, ByteDance is already exploring the possibility of selling a majority stake in TikTok in the US., the organization responsible for the social networking business in the United States. However, this will be under certain conditions.

First and foremost, TikTok will want to get rid of its US subsidiary. but it won’t include the most important asset: the recommendation algorithm.. This can be especially frustrating for anyone interested in growing a business, since it is this algorithm that has made TikTok so popular and even addictive.

Another point analyzed is the preference to sell the social network to companies outside the technology sector. This sounds quite complicated and not even very feasible. In any case, this possibility is being actively discussed at ByteDance.

TikTok will consider selling, but without a recommendation algorithm

Let’s not forget that China must give regulatory approval to any sale involving ByteDance. The Asian giant has already indicated that They disapprove of any negotiations that involve technology vital to their national security.. And the TikTok algorithm takes this fact into account.

The possible sale of TikTok without its recommendation algorithm raises various questions. For example: How much does the American part of the social network cost? Is TikTok a viable business without the technology that made it so popular? Who would want to commit to purchasing a platform without having any real confidence that they will be able to get a return on the investment?

There is no shortage of names of potential candidates to buy the platform. Bobby Kotickthe former leader of Activision Blizzard, was one of the first to express interest in TikTok, and even contacted Zhang Yiming, co-founder of ByteDance, to explore a hypothetical listing. Steven Mnuchin, a former US Treasury Secretary, has also publicly expressed his desire to acquire the social network. And even a billionaire Kevin O’Learyfrom the TV show Shark TankI would be willing to make an offer.

We’ll have to see how the story continues. TikTok is not TikTok without a recommendation algorithm, and that much is clear. But the reality is also that there are several chapters to be written in this story, and ByteDance will exhaust all available options before getting rid of the popular video app that 170 million users IN THE USA.