The Uncertain Future of TikTok: Will the Popular App Survive?

The “end” of TikTok has begun. As the dust settles after a week in which the US Congress passed legislation very quickly, it is clear that next year’s TikTok will look very different from the one we use today.

With President Joe Biden’s approval of a $95 billion foreign aid bill on April 24, TokTok’s four-year nightmare has become Ta’s reality. If TikTok’s parent company, China’s ByteDance, refuses to sell its shares, the US will ban TikTok nationwide. The passage of the foreign aid bill started a timer, giving TikTok 270 days to find a new ownership company (as a reporter in the Washington Post pointed out, TikTok will have 270 days to find a new owner (The deadline will be the day ). before the inauguration of the president.)

There are several possible directions for this development. A US company or private equity fund could buy TikTok along with a powerful recommendation algorithm. Otherwise, acquiring companies may be forced to accept only the bare bones of the platform, without the algorithmic functionality.

The Information reported on April 25th that ByteDance has already started planning what an algorithm-free diversion might look like. Or, TikTok could disappear if no buyer is found.

The uncertain future of TikTok

TikTok has announced its intention to file a lawsuit to challenge the enacted law. But unless TikTok or its many users somehow win the case, the likely result will be a very different app than it is today.

If a US tech company miraculously acquired TikTok and its algorithms from ByteDance, it would likely incorporate TikTok into its own products and services. However, it is unlikely that something like “TikTok by Meta,” for example, will emerge. Big tech companies like Meta Platforms have come under increased scrutiny in recent years due to antitrust laws. If a company with a large social platform absorbed a large competitor, it would raise alarm at the Department of Justice and the Federal Trade Commission.

Microsoft has expressed interest in acquiring TikTok, but Microsoft may be one of the few viable options for selling TikTok. Or, Microsoft’s largest subsidiary is LinkedIn, but can it really be called a rival to TikTok?

Elsewhere, even if a private equity fund like Blackstone Group were to buy TikTok without its excellent algorithm, it could be difficult to rebuild the heart of TikTok. Companies that don’t have a large staff of highly qualified algorithm experts likely don’t have the expertise to quickly rebuild a feed-based social media platform from scratch. Even if you try, it is doubtful that you will get good results.

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