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The biggest tell that ByteDance has given us on TikTok (and something that gives the game away) is that they’re refusing to divest TikTok and are instead choosing to take a multi-billion dollar bath. This did not happen when the USG pushed a forced divesture on Grindr
David Watson 🥑
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The real reason the app is going away isn’t the Democrats, Republicans or even the United States government. Ultimately, this is the CCP & ByteDance choosing to kill something that didn’t need to die. And you should be asking why
This is American exceptionalism encapsulated in one tweet. You think our market really is so important to them on TikTok ? C'mon
It’s the most important consumer market on planet earth, so yes. And outside of China, where they use the app Douyin, it is their second largest market by revenue (not sure on profit margin though)
TBF Google and Meta just closed up shop in China and didn't divest under similar circumstances a decade ago, destroying billions in market value. While I think forced US divestiture of TikTok is a good move, I'm not sure if this is the "tell" you think it is.
If that were true, how would them taking that bath fix anything for them? They'd still be just as cooked and also losing the money. I think it's because it's the lesser cost for them because they have other revenue they care more about.
because it’s a multinational with valuable IP and trade secrets and they don’t want to create a new competitor who would then expand, immediately competing with Tik Tok in its other markets
Walking away from hundreds of billions. The answer is and could only be one thing: the value it has as a tool of the state to influence and surveil American citizens.
Why should they be forced to sell? How is that law remotely legitimate? In the 1950s the USSR could publish an English language Pravda in the US. The biggest tell that the US establishment wants to crush free speech is this forced divestiture.
What? This is the fault of the U.S. government. TikTok already moved their data servers to Texas but no that wasn’t enough.
You don’t need to ask why. It’s the most popular App in the world. Why would they sell? They gain nothing long term by selling. If I owned it I wouldn’t be bullied into selling either. Who cares if some American losers “suffer” bc they can’t use a social media app? Big whoop.
They might have also decided that putting their platform into the hands of whichever American oligarch was in line to buy it wasn't in their interest. Honestly, I'd rather see it buried, myself.
i think the long term result is that they sell because the western bytedance investors are going to freak the fuck out if they turn down 100 billion on a long term basis but not preemptively doing it is just a hilarious instance of giving up the game
If the company would be willing to sell to Musk, what does that tell us about this platform we are currently posting on?
ByteDance is more so protecting their Algo … they have the best one in the world… they let US get it they lose their competitive advantage.. way more damaging.
Comments are split between "it's just big business" and "it's a Communist Party plot," but the big takeaway is that we really need to be more serious about regulating media and protecting privacy. Unfortunately "First Amendment" diehards disregard these issues.
I don’t like TikTok and don’t use it. But, sometimes people just don’t want to be strong armed, and can walk away from money. Stop stretching so hard to fill the narrative
77% of the revenue is from China the US represents only 16% of their users and probably doesn’t make any money. Why are they gonna sell it to an American company? just dump US customers probably better business decision in the long run. World doesn’t revolve around us.
You’re all acting like ByteDance isn’t a worldwide company that has revenue streams for TikTok outside of the US that are more valuable in the long term to ByteDance than selling it to retain the US market. Use your head.
This is goofy. If the CCP demanded that Google or Meta sell to a Chinese company for pennies on the dollar in exchange for access to the Chinese market, people wouldn’t be arguing that they’d be evil for saying no. Probably the opposite.
I wish people would stop saying this. US is ~30% of their revenue. Current offers are around 1 year of global revenue. It would dilute their brand, potentially create a global competitor and basically makes 0 financial sense.
That’s because the Chinese had all the nudes of users that would constitute a century’s worth of kompromat :)
Who's going to pay them the $100 Billion it's worth that would get the sale approved before their entire user base flees to the next app? They aren't idiots. Tencent has several more of these apps to herd these people to. It's already begun.
Imagine if a politician I Beijing demanded Elon sell X? We would collectively as a country tell them to F themselves
This is such a profoundly retarded analysis of the situation " oh they won't le the usa strong arm them into destroying their company anyways by selling?they were always just evil!!!!" Blind.
The IP for TikTok is considerably more valuable than the IP for Grindr, which also offers a much more localized service (having users worldwide isn't useful for what the average person wants to achieve within a mile of their home). Yall are just straight-up ignorant.
Why do you expect Chinese firms to compromise their sovereignty? It’s a shakedown and they’re not playing along, and they shouldn’t. Our loss.
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Arnaud Bertrand
@RnaudBertrand
This is such a bad take. First of all the US is not TikTok's largest market, it's Indonesia. Second of all, it is absolutely a rational decision: it's a good old shakedown, the US is effectively trying to steal the only major social network it doesn't own. China isn't a meek x.com/ECaliberSeven/…
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Yes. That’s why I push back when people call it a ban. It’s not. It’s a choice by the owner to shut down rather than comply with the law.
Twitter sold for $44 billion and is a pathetic investment compared to TikTok. They’re likely losing out on over $100 billion minimum
Is there any security concern over Musks very cozy relationship with the CCP? What about all the video data Teslas gather in the US. Is Musk gathering data on US elected officials and transferring it to data centers in China? Weird this guy isn’t bothered by that.
"If you don't allow Americans to own your company then you are probably evil." Noted, never refuse to sell your company to the US, thats not allowed.
Are you fucking stupid? Why should a non US company be forced to sell their product for pennies on the dollar because a bunch of geriatric neocons want to start a war with China.
The outcome of this will be Americans widely using VPNs like people in most other countries do to access it anyway. The government is going to alienate tens of millions of Americans just because Israel demanded it. Heck of a thing.
Obviously you have an opinion that you seem to think you’re cleverly alluding to here and with your sub-tweet but really it just appears that you don’t have the confidence to say it. BLUF
I know you guys think this is such a smart take but you're failing to consider that tiktok thinks it can beat the forced divestiture. You're thinking is cucked. ockhams razor trained only in beta assumptions
Because the algorithm is valuable and the US isn’t the majority of their business. Imagine if the EU demanded Microsoft sold their EU operations to an EU company or have Windows be banned as CIA spyware.
The US market doesnt make up a significant share. Anyways, its the us investors like oracle that will take the hit because TT in the US was already majority owned by US stake holders. This was nothing but a game of chicken and TT won.
The US completely called out the “we are independent from the CCP BS.” Absolutely no company that wasn’t under CCP control would choose to take a multi $B bath instead of selling. Nice job calling the bluff.
If something is really worth hundreds of billions of dollars you don’t sell it to your biggest competitor you dumbass. Would the US sell space program secrets or atomic program secrets worth hundreds of millions? Use your brain dumbass
Hey genius, does ByteDance’s majority owner NEED billions of dollars? Capitalists are so dumb sometimes. “No fair, y’all were supposed to remain dumb and cheap labor, not build things for yourselves! 🤬🤬
lol the US is not their top market for Tiktok. Why spin off a competitor with all the infrastructure, code, and algorithm already in place when you can just bounce and let someone try from scratch.
It’s interesting that you mention Grindr. You see Chinese don’t want that when they have a success story and the next thing is the US forces them to sell by pointing to a previous case when they caved in. A human lets a hyena senses their weakness, a second hyena will jump in.
Do you think Facebook/Twitter should divest if China insists on it? Do you understand the idea of free speech, first amendment etc?
How about China bans tesla and apple unless they are sold to chinese firms?
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