Should ByteDance decide not to sell the platform to a US company, the TikTok ban could occur soon. According to US Representative Mike Gallagher, this might be advantageous for ByteDance’s investors. He oversees the US-China dispute committee, which was recently approved by a vote on the House floor.
Additionally, according to Gallagher, the TikTok transaction may occur before the US presidential elections later this year.
ByteDance Investors to Benefit from TikTok Sale, says Gallagher
According to CBS News, US Congressman Mike Gallagher talked about the possible sale of TikTok and said that ByteDance investors might make money from it in the future. Gallagher, who is renowned for spearheading the bill on this issue, made these comments on CBS’s Face the Nation last Sunday.
According to Gallagher, “It would be in the financial interest of ByteDance’s investors to complete the sale before.”
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In addition, he said that the sale would improve TikTok’s user experience in addition to bringing in more money by severing the platform from “propaganda” and its existing Chinese ownership.
TikTok Sale May Happen Before US Elections
Gallagher thinks the TikTok sale might occur before the impending US Presidential elections in November, given the bill’s current status. He cautions that if the platform isn’t sold, a new regulation that designates it as a foreign-controlled platform that operates in the US may prohibit it.
According to Illinois Representative Raja Krishnamoorthi, TikTok presents a distinct threat as it is under the control of China, a foreign foe, as opposed to previous concerns.
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TikTok Ban and the RESTRICT Act
The RESTRICT Act was passed by the House last week, and if TikTok doesn’t follow the law’s guidelines when it goes into force, there may be a ban on the social media platform. This bill states that if TikTok doesn’t give ownership to an American business, government organizations may designate it as a foreign entity and perhaps outlaw it. The platform will be given about 180 days to abide by the rules and make a transaction.
The bill just needs to be signed into law by US President Joe Biden. Who had earlier promised to do so if it passed the House? The statute will become operative upon signature.
Though there aren’t any definite buyers for TikTok just yet. Bobby Kotick, the former CEO of Activision Blizzard, has expressed interest in acquiring the site. He has been talking about this concept and looking into possible partnerships with other digital entrepreneurs.
Although the measure hasn’t been enacted yet. TikTok’s future appears uncertain while it waits for President Biden’s assent. Once signed, it might go into effect quickly—possibly even before the next round of elections. According to Representative Gallagher, investors in ByteDance would benefit from the deal. It would benefit the Chinese stakeholders monetarily and enable the platform to carry on operating in the US.
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