{"id":655,"date":"2020-08-13T00:01:20","date_gmt":"2020-08-13T04:01:20","guid":{"rendered":"https:\/\/www.pwvconsultants.com\/blog\/?p=655"},"modified":"2020-08-13T14:59:27","modified_gmt":"2020-08-13T18:59:27","slug":"the-current-status-of-trumps-tiktok-ban","status":"publish","type":"post","link":"https:\/\/www.pwvconsultants.com\/blog\/the-current-status-of-trumps-tiktok-ban\/","title":{"rendered":"The Current Status of Trump&#8217;s TikTok Ban"},"content":{"rendered":"\n<p>Last week, U.S. President Donald Trump signed an executive order stating that the Chinese-owned social media app TikTok would be banned in 45 days if it was not purchased, at least in part, by a U.S.-run company. The app is owned by Chinese-firm ByteDance, so POTUS is looking for US involvement to ensure national security. The question is, will a deal be done before time runs out?<\/p>\n\n\n\n<p>There have been several companies thrown around which could be interested in purchasing the social media giant: Facebook, Apple, Google, Microsoft, Twitter. Microsoft and Twitter have admitted to being in talks to purchase the app, while it seems the rest have bowed out, or at least have not made it known they are interested.<\/p>\n\n\n\n<p>It\u2019s plainly obvious why digital companies would be interested in purchasing the app. TikTok rose to social media prowess quickly, becoming a pop culture sensation almost overnight. It currently has over 100 million users in the US and over 2 billion downloads worldwide. According to <a href=\"https:\/\/www.businessinsider.com\/tiktok-billionaire-zhang-yiming-net-worth-lifestyle-2019-11#zhang-founded-tiktoks-parent-company-in-2012-4\" target=\"_blank\" aria-label=\"undefined (opens in a new tab)\" rel=\"noreferrer noopener\">Business Insider<\/a>, \u201cThe company is now worth $75 billion, according to&nbsp;<a href=\"https:\/\/my.pitchbook.com\/profile\/63628-21\/company\/profile#deal-history\/110122-57T\" target=\"_blank\" rel=\"noreferrer noopener\">Pitchbook,<\/a>&nbsp;making it the most valuable privately held company in the world.\u201d<\/p>\n\n\n\n<p>Trump\u2019s executive order comes as US relations with China are more and more strained, and after weeks of intense drama surrounding TikTok. <a href=\"https:\/\/www.cnet.com\/news\/trump-issues-order-effectively-banning-tiktok-everything-you-need-to-know\/\" target=\"_blank\" aria-label=\"undefined (opens in a new tab)\" rel=\"noreferrer noopener\">The order states<\/a>, in part, \u201cThe spread in the United States of mobile applications developed and owned by companies in the People&#8217;s Republic of China continues to threaten the national security, foreign policy, and economy of the United States,&#8221;&nbsp;<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/executive-order-addressing-threat-posed-tiktok\/\" target=\"_blank\" rel=\"noreferrer noopener\">the executive order reads<\/a>. &#8220;At this time, action must be taken to address the threat posed by one mobile application in particular, TikTok.\u201d TikTok has already been banned in India, along with 58 additional Chinese-based applications. In the U.S., Congress also passed legislation banning the app from all government phones.<\/p>\n\n\n\n<p>If the company wants to avoid a U.S. ban, it must sell. China has long been known to use applications to spy and ferret information from users in other countries, but TikTok\u2019s quick rise to fame is causing national security concerns in a variety of countries.<\/p>\n\n\n\n<p>Microsoft is the frontrunner in the buyout, looking to spend $10-$30 billion, depending on how much of TikTok the company agrees to take on. Many are surprised by Microsoft\u2019s interest in the app, and Bill Gates called the deal a \u201cpoisoned chalice.\u201d Microsoft is not in the social media game, they\u2019re in the business of software and security. But, at a worth of $1.6 trillion, they can certainly afford it.<\/p>\n\n\n\n<p>Twitter\u2019s interest is newer, their negotiations not quite as far along. Twitter is worth a mere $29 billion, so raising the capital for such a purchase will be more difficult. Although it would be more apt for Twitter to land TikTok considering its own prowess in social media. It\u2019s not the first time, Twitter purchased a startup called Vine in 2012, which was a short video application. Vine was shut down in 2016, though. Adding to the appeal of already being a social media giant, Twitter\u2019s size may actually be an advantage because it won\u2019t be subjected to the same level of antitrust scrutiny as Microsoft.<\/p>\n\n\n\n<p>Really, though, it doesn\u2019t matter which company purchases TikTok, only that it happens by the deadline. Microsoft has the capital and is further along in negotiations with the company, but Twitter is more likely to keep its current success rate going. In the end, if neither company purchases all or part of TikTok, the app will be banned in the U.S. It\u2019s impossible to tell if a deal will get done in time, but it is certain that ByteDance wants to see it happen. Any creator of a product wants to see that product succeed, even if it\u2019s not at their own hands.<\/p>\n\n\n\n<p>Additional food for thought: Even if a deal is not done and Trump\u2019s order goes into place, it\u2019s unclear if his order will withstand legal processes bound to follow.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TikTok faces a ban in the U.S., which has over 100 million users, if not sold to a U.S.-based company. Microsoft and Twitter lead the charge in the buyout.<\/p>\n","protected":false},"author":1,"featured_media":658,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[4,1501],"tags":[1508,1511,1510,1504,1507,1509,1466,1506,1270],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v22.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Current Status of Trump&#039;s TikTok Ban - PWV Consultants<\/title>\n<meta name=\"description\" content=\"TikTok faces a ban in the U.S., which has over 100 million users, if not sold to a U.S.-based company. 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