From: allin
The TikTok divestment bill has been signed into law, passing the Senate with a vote of 79 to 18 [01:10:28]. President Biden signed the bill, putting it on a fast track for either divestment or shutdown [01:10:35].
Bill Provisions
The TikTok divestment bill was bundled with 61 billion for Ukraine, 8 billion for the Indo-Pacific region (Taiwan) [01:10:47]. The House also added a provision requiring the president to seek a $10 billion repayment from Ukraine’s government [01:11:01].
ByteDance’s Response
Early reports indicated that ByteDance, TikTok’s parent company, is exploring selling a majority stake in TikTok’s U.S. business [01:11:20]. This potential sale would be to a non-tech company and notably without the algorithm [01:11:28]. Speculated potential buyers include Walmart or Disney, as Disney previously considered buying Twitter but avoided its “toxicity” [01:11:32].
The Chinese government has expressed opposition to the sale of TikTok in the U.S., which could complicate the divestment [01:18:25]. If the sale proceeds, investment banks like Morgan Stanley and Goldman Sachs would likely be hired to manage the auction process [01:18:56]. There are a limited number of companies capable of making a bid, potentially including large private equity firms or other major corporations [01:19:05]. Some speculate that the company could be sold to a non-tech company like Walmart, Disney, or even Netflix [01:19:47]. This could significantly reshuffle the tech and media landscape [01:20:38].
National Security Concerns
One of the primary concerns driving the TikTok ban is the potential for the app to act as an “ambient passive surveillance device,” collecting data via the microphone even when not actively in use [01:21:02]. There are also concerns that the Chinese government can influence content and censor sensitive topics within the app [01:23:02]. Examples cited include censorship of topics related to China such as Hong Kong, Uyghurs, and Tiananmen Square [01:23:50]. One user’s video quoting a Reuters study on this censorship was held for review, demonstrating this control [01:22:56].
Another viewpoint suggests that the U.S. government views TikTok as a security risk, noting that countries like Iran, North Korea, or Russia would not allow American companies like Facebook or X to operate within their borders [01:22:25].
The argument is made that if TikTok’s algorithm is not part of the sale package, the product itself might not be significantly better than alternatives like YouTube Shorts or Instagram Reels, making its economic justification questionable [01:21:31].
Arguments Against the Ban / Implications
Some argue that the TikTok ban is a “sweeping new federal power to ban foreign adversary controlled applications” [01:14:56]. This new category of “foreign controlled apps” could lead to future bans of other platforms [01:15:05]. Telegram is specifically mentioned as a potential next target due to its Russian founder and unproven rumors of Russian government backdoors [01:15:14]. It is suggested that a media campaign could promote the idea that Telegram is used by terrorist groups, making it easier to ban [01:15:45].
Concerns are also raised about the potential for such legislation to target U.S. companies like X (formerly Twitter) [01:16:21]. It is believed that a future Biden administration might pressure Elon to divest X if censorship and weaponization of government power continue [01:17:12].
The broader implication is that the “National Security State” is gaining more power, as evidenced by the TikTok ban and the approval of warrantless spying on Americans [01:12:46]. Critics argue that these actions are fueled by fear and disproportionate to the actual threats [01:13:07].
Future Outlook
The debate continues on whether China will allow ByteDance to divest TikTok or if it will be shut down [01:12:28]. TikTok generated $14 billion in revenue last year and has 170 million active users in the U.S., with revenue growth exceeding 40% [01:18:05]. This significant economic value makes a complete write-off less likely if a sale is permitted [01:18:18]. The situation is seen as a “gun to the head” approach that appears to be working [01:11:26].