The choice made: TikTok prepares to announce a buyer

TikTok prepares to announce the buyer. TikTok has decided on the buyer of its assets in the United States, New Zealand, and Australia and will announce the decision soon. Among those who can become the owner of TikTok is Microsoft in partnership with Walmart and Oracle. Meanwhile, due to changes in China’s export laws, TikTok owner ByteDance will have to obtain special permission from the PRC authorities before making a deal with the Americans.

ByteDance has selected a buyer for the American, Australian and New Zealand segment of its social network TikTok, citing sources familiar with the situation. The Chinese corporation can announce its decision as early as Tuesday, September 1.

The buyers are likely to be Microsoft and Walmart, who have joined forces, and software maker Oracle.

According to the decree of US President Donald Trump, TikTok must be bought by any American company before November of this year. Otherwise, the American leader threatens to block the social network in the country due to possible close ties with the Chinese government. While ByteDance still has two months left, it is clearly in its best interest to close the deal as soon as possible.

However, as it became known the day before, ByteDance may face additional difficulties in transferring TikTok assets in favor of American companies. China has imposed restrictions on the export of technologies related to artificial intelligence and facial recognition. Now, this requires a special permit from the PRC authorities, which may take 30 days to obtain.

Analysts think that the changes to Chinese law, which hasn’t been updated since 2008, were deliberately made to prevent TikTok from being sold overseas.

In late August, it became known that the head of Facebook, Mark Zuckerberg, could “incite” President Trump on TikTok, telling him about the potential threat from an application whose parent company is located in China.

During a visit to Washington last fall, Zuckerberg actively promoted the idea that Chinese apps could pose a threat to US national security in a meeting with officials and lawmakers. Also, at a private dinner in the White House, the head of Facebook, in an interview with Trump, said that IT companies from the PRC interfere with American business, and this problem needs to be urgently dealt with. At the same time, a year ago, at an internal meeting with employees of the company, Zuckerberg called TikTok the main competitor of Facebook.

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Awais Nazar

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