What are the effects of a possible ban in the United States?
The “Tok Tok” application is on his way to a moment that solves its fate in the United States after President Joe Biden signed legislation to support the two parties in April, which prohibits the application of social media in the United States, unless the royal Chinese company has dropped control over it. Byteedance, the parent company “Tik Talk”, gave 270 days to find a buyer. While the application is conducting a legal battle to prevent the entry into force of the law. The US Court of Appeal for the province of Colombia will begin to listen to oral pleadings on September 16 in the appeal filed by the company. 1) Why did the congress move against ‘Tok Tok’? The concern of the lawmakers is that ‘technical talk’ poses a security threat to US users, because China asks its businesses, if necessary, to share any information regarding national security with the government. There is concern that the Chinese government can abuse the data of “Tik Talk” users, for example by preparing profiles for them and exposing them to extortion, and that it may affect the content that US users watch on the application. 2) What is the answer of “Tech Talk”? The company that owns the ‘Tech Tok’ denies these problems strongly and has spent more than two billion dollars on a project that isolate the data from US users. In a document submitted to the court on May 5 to challenge the draft law, “Byte Dance” said: “For the first time in history, Congress begins a law subject to one platform to express an opinion on a permanent country level ban, and any US citizen is deprived of participating in a unique society through the internet that includes more than a billion.” 3) Will your “asset dance” “type talk” sell if you lose the matter? “Byte Dance” has all the reasons for rejecting the separation of the activities of “Tik Talk” which is surprising as a result of (and the growth as well). The Chinese government must agree to any exit plan, and the government has announced on its part that it will oppose forced selling. It is possible for US lawmakers to be satisfied with something less than a complete sale; Perhaps talk Talk becomes a single -based unilateral entity, while bees dance remains an investor. What makes matters more complicated is the statement of former President Donald Trump, the Republican candidate for the presidency in the election scheduled for the fifth of November, that he oppose the sale, and abandoned the position he took when he was in the decision. Trump’s opposition could be a factor that affects the case if the case ends with his victory in the election before completing a sale. 4) Who can buy ‘tuk’? Any buyer of the business will need a large amount of money. The value of “asset dance”, with private ownership, is estimated at about $ 268 billion. Although the “Tech Talk” work in the United States will certainly be much smaller, its value could extend between $ 40 and 50 billion. In comparison, Elon Musk paid $ 44 billion for obtaining X, the social media platform previously known as ‘Twitter’, in 2022. Such a high price discourages most potential buyers to think about buying. Both “Mita platforms” and “alphabet” may seem logical candidates for this acquisition, but they were concerned about organizational concerns about monopoly, which can mainly exclude them. Oracle is often seen as the most likely buyer because the software company is the current partner for protecting “Tech Tuk” data in the United States. It contained the data of the US users of the application, and she was willing to buy it in 2020, when Trump at the time tried to lay a sale. But “Oracle” faces debt to about $ 84.5 billion, partly due to a major acquisition process in 2022, which excludes the company to bear the cost of “Tok Tok” on its own. Tek speaks without working in the US market? ‘Byte Dance’ is already running a similar version of the Chinese ‘Tap Talk’, ‘Douyin’, and has hundreds of millions of followers. However, as other platforms realize, the United States is the most valuable market for social networks due to the distribution of major declared advertisers to pay to reach the American public. The abandonment of the US market in favor of another competitor would post the rest of the world markets of “Tech Talk”, as there will be a real concern that the network’s network changes in the United States will move away from “Tok” users, and their direction to other alternatives focused on the United States. It is also possible that the ban on Tiktok store, which blends online entertainment and unplanned impulsive purchases. The company expects its business to grow ten times in 2024.6) Who will benefit from the sale of ‘Tech Tok’? The most obvious answer here is ‘Meta’, which owns ‘Instagram’, an application that is already popular, and contains a competitive product for ‘Tik Talk’, which is ‘rales’ for short cuts. And if ‘Tech Tok’ is sold to another company and offended it by handling it, or being banned for a long period while working on the details of the exit process, the ‘rales’ will be the most important alternative to US users. Trump said he is currently opposing the forced sale of “Tok Tok” because he would “benefit” Meta, whose accounts were suspended from his two -year platforms in January 2021, after concluding that some of his publications had attached his supporters to carry out violent riots in the “Capitol Hall”. It is also possible to benefit some other services that focus on sharing videos, including YouTube, owned by Alphabet. In addition to winning new users, ‘Mita’ and YouTube are expected to rip the advertising income of ‘Tech Tok’ if it is no longer possible to manage the application. The value of each of the “Mita” and “Alphabet” shares jumped after the Draft Sales Act obtained the approval of the House of Representatives. The “X” platform can also see an increase in the number of users and ads if the “Tech Talk” application disappears or has problems. What is the political aspect of the issue? The US controversy over the future of ‘Tik Talk’ can escalate with the approaching general election. Trump’s volatility of what he will do to Tok will complicate matters for Republicans. One of the wealthy Republican donors, a daring capital, Keith Rabua, has published on his account on the “X” platform that he will never finance. At the same time, the vote in favor of the draft law can harm some politicians who have young voters who love the application and will feel upset when banned. Democratic presidential candidate Trump and Kamala Harris created accounts on “Tek Tok” this year and utilized the platform in their election campaign. A study by the Pew Research Institute found that Americans supported the ban less than they were a year ago. China’s response should also be considered. It is not clear how the government will respond in forced sale, but the trade and diplomatic relations between the United States and China are likely to be affected. When the Trump administration printed for the sale of ‘Tech Talk’ years ago, the Chinese Ministry of Foreign Affairs said that the precedent of obtaining a company under the pretext of the protection of national security could lead to the target of foreign countries for US businesses, which describes it as the opening of the ‘Pandora fund’ (which comes from countless problems).