It is clear that Apple (and its market leading App Store) will NOT return the TikTok download to the App Store's shelves until this is sorted out. It has formally said it is simply following the law the Supremes upheld last week. And we are beyond the grace period for a divestiture of the US operations that the Congress thoughtfully-baked-into the law, proper.
Perhaps the most surprising part of this delay is that (if MSM reports are to be believed) China's Xi is now open to letting US investor(s) gain control of the US operations of TikTok. That, coupled to the likelihood that ByteDance has been talking to various suitors for months now. . . should signal a quick deal closing.
But I suppose with Tangerine 2.0 now muddying the waters -- by saying maybe the US government must get a 50% stake in the US operations (a proposal with manifold Constitutional infirmities) -- the calmer, more rational businesspeople at the negotiating table are seeking ways to blunt the orange tinged chaos (should they announce an M&A deal that doesn't make the US government at least a part owner).
In any event, Condor thinks the proper lens on all of this is that it will take longer. . . precisely BECAUSE Trump infuses chaos everywhere he drops in. In time, though -- the private parties' deal (Amazon? Oracle? or another) will get done. [As we said before, Musk hisself has Hart-Scott problems here. since he personally controls X-itter (formerly Twitter, a competitor).] Here's some representative coverage in the MSM:
. . .[T]he big question is now about who or what will buy TikTok and not whether ByteDance will sell it, some experts say. Still, it will be complicated. People have also expressed concerns over how a sale might affect TikTok’s unique algorithm, which is known for its ability to curate highly personalized feeds and may be hard to replicate by a new owner.
“What happens to the algorithm? Will this be an outright sale or a JV/partnership structure?” Dan Ives, an analyst for the financial services firm Wedbush Securities, wrote in an analyst note Wednesday. “Our view is ByteDance is willing to play ball and look for a legitimate deal/JV partner to keep TikTok up and running while protecting its algorithm. From the beginning we have only seen a few core potential bidders for the TikTok asset that would be ‘approved’ by Beijing. . . .”
Trump has proposed the idea of a joint venture that produces a 50-50 ownership split between ByteDance and the United States, although it’s unclear whether he means ownership by the U.S. government [Ed. Note: Seriously, WTH, Tangerine?!] or a U.S. company. . . .
As I've said before, I don't use the stuff -- but I am a balanced supporter of both. . . free expression privileges -- and our own US national security concerns. We will keep an eye on it -- so, do stay tuned. Onward, into a chilly, but sunny Friday here. . . with bright white stuff covering most open ground, still. [I'll do a Lilly-focused Q4 2024 lobby piece next, based on high traffic out of Lilly's HQ down in Indy. Grin. . . .]
नमस्ते
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