The beginning of the end for TikTok is now in motion. Following a rapid legislative push by the US Congress, it is evident that TikTok will undergo significant changes in the coming year compared to its current state.
With President Joe Biden signing a $95 billion foreign aid package, the long-standing fear that has loomed over TikTok for the past four years has come to fruition. If ByteDance, the Chinese owner of TikTok, does not divest its ownership stakes, the app will face a nationwide ban in the United States. This action has initiated a 270-day countdown for TikTok to find a new owner, with the deadline coinciding with Inauguration Day in 2025.
There are several possible outcomes to this situation. An American company or private equity fund could purchase TikTok along with its influential recommendation algorithm. Alternatively, a buyer may have to settle for acquiring just the platform without the algorithmic capability. ByteDance has reportedly explored scenarios for selling TikTok without the algorithm. If no buyer emerges, TikTok could simply disappear.
Even if TikTok or its users manage to challenge the law through a lawsuit, the app’s future still remains uncertain. The possibility of a US tech company acquiring TikTok and integrating it into its existing products is plausible, but the likelihood of seeing a “TikTok by Meta” is slim due to antitrust concerns surrounding major tech firms.
Microsoft has expressed interest in acquiring TikTok, presenting one of the app’s few viable options for a buyer. However, if a private equity firm were to purchase TikTok without its prized algorithm, rebuilding the core functionality of the app could prove challenging.
If TikTok is left without a new owner, alternatives like YouTube Shorts and Instagram Reels may attempt to fill the void in the market. Nonetheless, these platforms cater more towards a specific demographic and may not fully replace the unique appeal of TikTok.
While TikTok remains optimistic about its legal challenges and potential overturning of the law, the app is poised to undergo significant changes regardless of the outcome. The future of TikTok is uncertain, but one thing is clear: it won’t be the same as we know it today.
