It’d be really funny if ByteDance doesn’t sell and TikTok getting banned crashes the economy.
Given the CCP involvement in their country’s businesses, I think there will be a lot more involved than would be in other sales. There are already articles talking about how the sale will take longer than the 6-month timeline (if it passes the Senate/President and any potential legal challenges).
Any sale of a hundred+ billion dollar company takes years. Look at the attempted acquisition of ARM.
Uh…TikTok is not ARM, or anything close to resembling it.
The US justification for forcing the sale of TikTok may be horseshit political theater for dubious reasons, but that doesn’t close the gap of making a TikTok sale anywhere close to resembling ARM.
$16B US revenue, doubling YoY, gross margin likely in the 70s. Even at the P/S of an established company like Facebook, TikTok’s US operations would be worth on the order of $200B. That’s on par with the largest acquisitions in history and dwarves Nvidia’s acquisition attempt of ARM.
Relative valuations aren’t the key differences, it’s what the companies do, and what they support.
ARM technology powers the vast majority of mobile devices, and is estimated to have upwards of 30% of the PC CPU market share by 2026.
It’s sale, or acquisition, is more than a pissing match between two great powers.
I don’t see there being a sale at all. ByteDance isn’t gonna sell the world’s hottest social media platform simply because a foreign country demands it, and even if it were a lucrative enough offer to be tempting, the CPC wouldn’t allow it anyway. If something like this happened in the other direction, I think 1/4 of the US Senate would go into cardiac arrest on the spot, and there’s exactly a 0% chance it would be allowed to happen
'Member when the libs were all up in arms about Orange Baboon picking Mnuchin for treasury secretary. Now they are all rooting for him to “buy” TikTok… Pepperidge Farm remembers.
Uhh…who is rooting for Steve Mnuchin to buy TikTok again?
Seems like a pretty bipartisan thing, I haven’t seen anyone in government offer any disenting opinion.
That’s because it’s not even a potentiality right now. Tik Tok is not up for sale, and the likelihood the Senate even takes up the bill to force a sale is very low. Why would anyone in government care what Steve Mnuchin thinks right now?
I always found this hilarious. I’m in Canada but this opinion applies to my country too.
Everyone keeps talking about evil undemocratic China, authoritarian, manipulative, immoral, untrustworthy and completely unlike our culture or ideals .
But we choose to conduct billions of dollars worth of business and transactions with them on a regular and ongoing basis.
We shouldn’t trust them … but we can buy everything we use from them.
Everyone keeps talking about evil undemocratic China - But we choose to conduct billions of dollars worth of business and transactions with them on a regular and ongoing basis.
That’s probably one of the biggest contradictions of capitalism. You can make up all the bullshit (or valid) reasons you want for why something is bad but because money is the only consideration, all of that falls by the wayside the instant they have something to offer that they want.
When communism finally wins, it will be because capitalists were the ones who ultimately funded them.
Europe had a view in the 90s–00s that trade can be a vehicle for enforcing peace. That plus capitalist greed let Russia invade Georgia and Crimea before that view changed overnight too late. Similarly countries turn a blind eye on what China is doing
Why not Mexico???
Absolutely hilarious framing here implying that it’s somehow China’s fault that US is trying to ban TikTok and now a bunch of US investors are getting fucked.
I wish all American investor dollars a very
permanent Chinese citizenship
My money’s just fine right here in my bank account. Plus some emergency cash in a drawer in my bedroom. I don’t know what the big deal is. Fuck 'em.
Sorry but your money in the bank isn’t fine, it gets slowly eaten by inflation. The inflation is designed in a way to stimulate your spending as saving them doesn’t make economic sense.
Bitcoin solves this. The 1 BTC you have today will always be 1 BTC which will always be the same portion of supply. How much that BTC buys you will change over time, but the portion of supply will always remain the same. And if the last 15 years are any indication, it will generally buy you more over time. Meanwhile, your fiat currency increases supply by 2-3% per year in “good” years.
BTC has kept to its fiscal promise or a fixed supply and reliable transactions for 15 years. Bitcoin has a market cap of 850 billion dollars, which places it in the top 25 countries by GDP. Bigger than Sweden or Israel. It is decentralized and not run by any country but by a protocol enforced by tens of thousands of computers all over the globe. With Lightning, you can send an international transaction in under a second for under a penny in fees. You can do that with a smartphone and halfway reliable internet access. It works in warzones, it works in international waters (with satellite internet), it works everywhere. It doesn’t care what your credit score is or whether or not your authoritarian government likes Bitcoin or not. No middlemen, no bank holidays, and it does this for < 1% of global electricity usage, mostly from renewables and “stranded supply”.
🙄
As always, keep all your dollars in money
Removed by mod
Good headline NYT, but now tell me why their money is stuck. Is it perhaps because the US is trying to legislate a TikTok ban?
You posted the article - did you not also read it? The article talks about that factor, among others.
Maybe OP was stuck behind the paywall
If you are going to post something and then comment on it, you should at least read it yourself.
It’s not just Tick tock, according to this article.
