TikTok’s fortunes are in reverse. On August 3rdmedia reported that U.S. President Donald Trump would give Byte Dance 45 days to discuss the sale of TikTok with Microsoft. But Mr Zhang and other investors are more likely to spin off TikTok than they were sold to Microsoft, according to a report by the South China Morning Post, cited by Caiassociat on August 2.
Tiger Sniffing Mobile Information Group works.
Author. Hu Zhanjia.
Earlier, it was reported that Byte Dance had tried to take a minority stake in TikTok’s US business, but the White House rejected it. Its parent company, Byte Dance, has accepted the White House’s offer to divest its U.S. operations completely after Trump threatened to ban TikTok from operating in the U.S. Now, the event seems to be a new turn, but the news of Microsoft’s acquisition is still uncertain.
Signs also show that TikTok’s life-and-death code is no longer in Zhang’s hands.
TikTok America: Helpless and powerless.
“There’s no way to do things that are victims of the big environment game.” As for TikTok’s situation, many in the industry said that “helpless and powerless.” “
“ByteDance’s international business has spent so much effort that whether the acquisition is successful or not, it’s certainly not a sum of money to cover.” “But there’s no way, there’s a risk of socializing.” Plum venture Wu Shichun on the tiger smell. “There are too many ways a country wants to seal a company.”
As for TikTok’s encounter in the U.S., a North American social entrepreneur also said, “The biggest impact of TikTok on the U.S. is that it rips a hole in the U.S. and, more importantly, the logic and algorithms behind it come from Chinese companies.” “And that’s something local companies can’t tolerate.”
On top of that, The presence of TikTok has upset U.S. President Donald Trump.
Negotiations between Byte Dance, the parent company of TikTok, and Microsoft were also suspended at one point over president Trump’s words and actions. Microsoft has suspended talks with Byte Dance to buy TikTok’s U.S. business after Trump expressed opposition to the acquisition of TikTok’s U.S. business by a U.S. company, Business Insider reported on Aug. 1, citing the Wall Street Journal. But the talks did not end, and the two companies are trying to clarify the White House’s position, the report said.
The Wall Street Journal, citing sources, said Microsoft had “high-level talks” with Byte Dance, the parent company of TikTok, to sell its U.S. business, but Mr. Trump on Friday opposed the deal. Mr. Trump told reporters on Friday that he would prefer to ban TikTok and not support the sale of its business, the report said, leading to a deadlock in takeover talks between Microsoft and Byte Dance.
In the wake of Mr. Trump’s opposition, TikTok made more concessions, including agreeing to add up to 10,000 jobs in the United States over the next three years, but it is unclear whether those moves will allow Mr. Trump to change his position.
And why is TikTok’s fate so “hearty” for Trump?
Since the US government’s crackdown on TikTok last month, there has been a theory among TikTok users that it may have nothing to do with China or “national security” and to the “embarrassing” incident with Mr. Trump at a campaign rally in Tulsa in June, according to an opinion piece by Forbes.
According to the New York Times, the Oklahoma Bank Center in Tulsa, where Mr. Trump held the rally, could have accommodated 19,000 people, but the actual number of tickets was only 6,200. And this is likely to be due to The TikTok users and K-pop (Korean pop music) fans deliberately collective appointment, and then the collective stoic.
The Los Angeles Times also said: “There is no evidence that an app used by teenagers like TikTok to share funny clips and dance videos would harm the national interest of the United States, but Mr. Trump sees the app as a beachhead for cyber defense.” It’s the president’s stubborn bigotry about national security and commercial espionage in a broader, economic and diplomatic strategy against increasingly powerful rivals. “
Despite the pressure from the White House, the TikTok team is still struggling. Vanessa Pappas, General Manager of TikTok USA, responded on Twitter on August 1st that TikTok will operate in the United States for a long time and “does n’etre” and plans to create more jobs in the United States.
Byte Dance, the parent company of TikTok, also said the tense international political environment, the clash and conflict of different cultures, and the plagiarism and smearing of rival Facebook would not affect its global vision.
“But the shouting is also weak.” Wu Shichun said.
In the current situation of TikTok, the multiple pressures on the US market are also the result of another key market failure after the Indian market.
TikTok is “forced” to lose the American battlefield.
One overseas entrepreneur has no qualms about claiming that the future of The TikTok’s US market after the Indian market will hit ByteDance’s path to globalisation.
“The real rise of Byte Dance is not entirely because of the Chinese business, which has made a lot of money in other countries, and the consequences of shutting down the two markets that are most important in nationalizing are unimaginable.” Once the U.S. business ends, it’s half the vantified space of the global imagination. He said.
As TikTok’s largest overseas market, TikTok has more than 600 million downloads in India, and according to TechCrunch, TikTok also has 200 million monthly users in India.
The loss of TikTok is visible to the public, with the loss of TikTok likely to be around $6 billion after the Ban in India, according to late Post.
Now, the U.S. market is hitting hard again. It was a blow to TikTok.
TikTok, which entered the U.S. market in 2018, has swept the streets in just two years, with data showing that TikTok will have more than 2 billion downloads worldwide in 2020, with the U.S. accounting for 165 million.
In May, the company’s Data and TikTok raised more than $95.7 million in the App Store and Google Play, up nearly 10 times from $9 million a year earlier, according to Sensor Tower, a research firm. In terms of paid users, TikTok has more than half of the 26.5 million monthly active users in the U.S.
As a result, there are also tik Tokers from the United States who are unhappy with the ban.
NBC News reported on August 2 that six TikTok users had told the media the day before that the popular app, which has 100 million users in the U.S., was particularly important for many because it had become a form of entertainment and education for them during the new pop season.
In an interview with US media, Some TikTok users even said that if Trump did ban the app, it could lead many young TikTok users to vote against him in November’s presidential election.
In fact, in order to enable TikTok to develop smoothly in the U.S. market and complete security reviews, TikTok has gone from executive to employee, in a “de-Chineseization” campaign to keep things as close as possible with domestic relationships.
In June, Kevin Mayer took office, and TikTok hopes to turn TikTok’s growth into billions of dollars in revenue under Kevin Mayer. More importantly, Kevin Mayer’s American identity and familiarity with home soil are unmatched by domestic teams.
According to PingWest, ByteDance is gradually tightening data access for Chinese employees to overseas products and services, and is a strong technology cut between Chinese and overseas operations.
Also in the industry say that in order to avoid trouble in the US, ByteDance has done everything it can: put the server in the US; put backups in Singapore; hire a US team to manage TIKTOK; and is not connected to the sound of the sound, not following the mainland censorship standards.
“But the current situation is that it is no longer possible to operate as before.” The biggest concern, he said, would be the so-called knock-on effects on other countries, after India and the US, said MR Meng.
However, that fear is becoming a reality.
After Mr. Trump announced on the evening of July 31st that he would ban TikTok from operating in the UNITED States, Australian media immediately said on August 2nd local time that Mr. Trump’s comments were likely to encourage the Australian government to follow suit.
TikTok is facing increasing scrutiny from Australia, which intelligence agencies have scrutinised and some MPs are urging the federal government to ban it, the Australian Broadcasting Corporation (ABC) reported Tuesday.
According to reports, TikTok is very popular among Australian teenagers and 20-somethings, with more than 1.5 million Australian users downloading the video-sharing app on their mobile phones.
“I’m afraid no one will think about the country in which this situation will continue to unfold next.” Meng added.
The out-of-control Tik Tok is facing a battle of backwaters.
“It’s not too much to say that TikTok’s internationalisation is going through a backwater war.” TMT domain analyst Lin Cong said.
“While ByteDance’s overall overseas revenue will not be hit with extinction, and in ByteDance’s overall outbound layout, all ApAs can almost find equivalent stakes overseas, the overall trend is that the negative trend in the TikTok US market will also result in immeasurable losses to ByteDance’s overseas influence.” Lin added. “I’ve hardly seen any Internet companies in China give up the market before.”
From the Indian market known as the MAU Harvester to the US market, which accounts for a significant share of revenue, and other unknown potential markets, no one knows what TikTok will face next, but there is no doubt that the once-dominant TikTok is becoming more passive, bringing a huge sweet TikTok to Zhang, and now it’s causing great distress.
Although ByteDance’s overseas layout, in addition to the tikTok, today’s headlines, watermelon videos, volcanic video and other products are also available overseas, this is clearly not a scale compared to TikTok’s current achievements.
It is well known that TikTok has been regarded as a benchmark product for China to go out to sea. A growing number of sea-going entrepreneurs once saw TikTok as a sample in an attempt to replicate its miracle of development.
At the same time, compared to other areas, cultural social categories and other content products because too sensitive, more difficult to go out to sea, the most demanding requirements for localization. And the United States as the birthplace of social ancestors, to make a world-class product, must first establish in the United States has become the industry consensus.
But now, byte Dance is certainly going through a major turning point.
For Byte Dance, the whole world is one, says Mr. Wu. And TikTok’s development to the present situation is not a matter of giving money to solve. While the rumoured $50billion bid is the best way for investors right now, it is not enough for Mr Zhang.
At the time of TikTok’s survival, the local giants had never stopped attacking it. Not long ago, Facebook-owned Instagram announced the launch of a new feature, “Reels,” and began tapping into the big-traffic network celebrities on the TikTok platform. After the Indian market was banned, the local alternative Chingari received more than 10 million downloads in less than a month at the Android App Store.
“This is exactly what app is facing at sea and the difficulties.” Lin said. He contrasted TikTok’s current situation with Huawei, who he said was the underlying technology of the Internet and was a strategic issue of global relevance. And TikTok is just the bottom of the technical end of an APP software application, an APP is no longer, can have N APP replacement. “Huawei is building roads, and TikTok is just a car. The road can’t be without, but the car can be changed. “
He also said that while TikTok is currently suffering from a rough patch, it cannot put market-oriented behaviour entirely on the line. The competition of the Internet is multi-dimensional, and THE APP is only the most superficial. “
“It’s no surprise that TikTok abandons the U.S. market, and it’s a situation that can only survive with a broken wrist, which is in line with market rules and investor expectations.”