A few days ago, there were reports that the US government has indefinitely shelved plans to sell TikTok to US investors. However, recent reports say that this report is inaccurate. According to insiders, TikTok is still in negotiations with the federal government on selling its US business and how to resolve national security issues. At present, TikTok, Wal-Mart, and Oracle all declined to comment.
The United States may still ban TikTok
According to the Sensor Tower, Douyin and TikTok attracted nearly $128 million in the global App Store and Google Play revenues. This is about 3.8 times that of January last year. Despite the numerous issues, TikTok is still the most popular short video platform for young Americans. In 2020, the number of downloads of TikTok topped the list of American mobile apps. The number of active users of TikTok in the United States currently exceeds 100 million. This is about one-third of America’s population.
The U.S. has since expressed its desire to ban TikTok since July last year. Subsequently, ByteDance was forced to agree to completely divest TikTok’s US business. On August 3, Donald Trump also stated that he would allow American companies to buy TikTok. In mid-September, Oracle issued a statement announcing that it has become a trusted technology partner of TikTok’s business in the United States.
Since then the U.S. has been postponing the ban date on TikTok. Although TikTok has won a couple of cases in court, it is still fighting for its head in the U.S. Presently, there is no new deadline for TikTok U.S. sale.
However, with the administration change in the U.S., the entire situation may change. According to inside sources, TikTok’s sale was to meet up with Donald Trump’s requirements. However, with the president and government out of office, the need for any transaction may change.
TikTok has been upgrading its platform in the U.S. Recently, the company added a feature that allows TikTok celebrities to share product links and automatically earn commissions from sales. Currently, several large advertisers are optimistic about the effect of the TikTok platform.
According to the New York Times, another executive order signed by the former president of the United States will come into effect in the near future. The order will prohibit the United States from trading with eight China-related applications, including Alipay and WeChat. Again, the new government has the power to overturn the order.