Despite President Joe Biden supporting the bill mandating TikTok’s sale or ban, its progress faces obstacles in the Senate
The House mandating a forced sale of TikTok—valued at approximately $150 billion—within 180 days is a massive challenge due to financial, technical and geopolitical hurdles.
Financial experts say the Chinese ByteDance-owned social media app is more likely to get banned nationwide than be sold before the deadline.
Here is why.
- Beijing opposes the forced sale and warned of retaliatory measures against US companies in China.
- Potential buyers, including former Treasury Secretary Steven Mnuchin and other investors, could encounter regulatory scrutiny and antitrust concerns, further slowing the process.
- Even if a sale were to occur, detaching TikTok’s algorithm from ByteDance’s ownership presents further complications, as China is unlikely to allow the source code to be sold to an American tech company.
Despite President Joe Biden supporting the bill mandating TikTok’s sale or ban, its progress faces obstacles in the Senate and legal battles.