TikTok Owner ByteDance To Prefer Shutting Down Of Loss-making App Rather Than A Sale If Exhausts All Legal Options; Algorithms TikTok Relies On Deemed Core To ByteDance Overall Operations, Making Sale Of App Unlikely, Sources Say
Portfolio Pulse from Benzinga Newsdesk
ByteDance, the owner of TikTok, would rather shut down the app if it becomes unprofitable than sell it, due to the integral role its algorithms play in the company's overall operations. This stance makes a sale of the app unlikely, according to sources.
April 25, 2024 | 4:28 pm
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NEUTRAL IMPACT
Amazon may face indirect impacts from TikTok's potential shutdown, affecting its advertising and e-commerce strategies.
Amazon's involvement in e-commerce and digital advertising could be indirectly affected by changes in the social media landscape, such as a TikTok shutdown. However, the direct impact is uncertain.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Google could experience shifts in online advertising dynamics with TikTok's potential shutdown, impacting its revenue.
Google's dominant position in online advertising could be affected by the changes in the competitive landscape and user behavior if TikTok were to shut down.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Alphabet could see changes in its advertising business model with TikTok's potential shutdown, affecting overall revenue.
As the parent company of Google, Alphabet could face indirect impacts on its advertising revenue and market positioning due to potential shifts in the digital advertising landscape caused by TikTok's situation.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust could see minimal direct impact from TikTok's potential shutdown, but broader market sentiment could be affected.
While the SPDR S&P 500 ETF Trust (SPY) may not be directly impacted by TikTok's potential shutdown, broader market sentiment and the performance of companies within the ETF that could be affected by the digital advertising landscape may influence its performance.
CONFIDENCE 60
IMPORTANCE 20
RELEVANCE 30
POSITIVE IMPACT
Meta Platforms could benefit from a TikTok shutdown, potentially gaining a larger share of the social media and advertising market.
Meta Platforms, as a direct competitor to TikTok, could see a positive impact on its user base and advertising revenue if TikTok were to exit the market, though the extent of this benefit is uncertain.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Snapchat could see an increase in user engagement and advertising revenue if TikTok shuts down, benefiting its market position.
As a competitor in the social media space, Snapchat could potentially increase its user base and advertising revenue if TikTok were to shut down, though predicting the exact impact is challenging.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60