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this post was submitted on 25 Apr 2024
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This might be sincere, but as someone who worked in M&A in a past life, it’s pretty standard to say “I’m not interested in selling” to bluff the price up a bit.
Thing is, it's only the US that would be threatening to ban it. And if they sell, this FreedumbTok would be available in most other countries. It would create a world-class competitor overnight, exactly equivalent to their product, that would also have a gigantic competitive advantage- access to US consumers and businesses. FreedumbTok would likely eat away at TikTok in the rest of the world. They won't sell
TikTok in the US is already separate than TikTok globally. Right now ByteDance(Singapore) owns USDS(US) that controls all domestic operations & data storage.
My understanding is that the algorithm at the core of TikTok cannot be ecported from China without the approval of Chinese regulators, and it seems pretty likely that they'll not approve a sale at gunpoint.
It also makes sense to me that they'd rather just amputate their US operations to preserve their IP and prevent an American competitor from fighting over their market share everywhere else.
This seems like the issue to me: if the U.S. can force this sale at a deadline-discounted price, what would stop the U.S. from doing this to every Chinese company that has success in the U.S.?
The US already banned Huawei when they started competing with the big US flagship phone brands
I might be wrong but I think their data centers are in the US and there's not really that complicated of an algorithm, just a lot of raw data on what each user likes/watches
Yeah, I don't think the algorithms are the valuable part of social media sites. It's the active users that make up the network effects. Meta has likely already figured out the algorithms already, Instagram reels is struggling because creators go where the viewers are and viewers spend the most time on the platform that has their favorite creators.
Yeah tech companies all want to present themselves as having created a very clever and scientific "algorithm" when really they're just hoarding personal data and exploiting the network effect to entrench themselves. Google web search is actually one of the more complicated algorithms because of the variety of types of results on the open internet, but even they are completely reliant on just troves and troves of user behavior data. If 80 people Google something and 2 people Bing it, Google has way better information on what results should be on top.
They use Oracle data centers in Texas and Virginia
I can't imagine there's that many suitors for this thing, it's a big bite