TikTok Would Rather Shutdown Than Opt For Sale
Portfolio Pulse from Shivani Kumaresan
ByteDance, the parent company of TikTok and rival to Meta Platforms Inc (NASDAQ:META), is considering shutting down TikTok in the U.S. rather than selling it amid legal battles. Despite TikTok's significant U.S. revenue contribution, ByteDance prefers a shutdown to protect its core algorithms. The company has denied plans to sell TikTok and is confident in overcoming legal challenges. The U.S. legislation gives ByteDance nine months to sell TikTok or face a ban, with a potential 90-day extension.
April 26, 2024 | 1:31 pm
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Meta Platforms Inc, as a rival to ByteDance, could see potential benefits if TikTok is shut down in the U.S., possibly gaining market share.
The shutdown of TikTok in the U.S. could lead to a redistribution of social media users, potentially benefiting Meta Platforms Inc by increasing its user base and engagement across its platforms. As a direct competitor, META stands to gain from any reduction in TikTok's presence in the U.S. market. However, the actual impact would depend on user response and Meta's ability to capitalize on the situation.
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