As legislative pressure mounts in the United States to either ban TikTok or force its sale, former Activision CEO Bobby Kotick has reportedly shown interest in acquiring the popular social network. that Kotick, who left Activision in late December after more than 30 years, discussed the idea of partnering on such a purchase with potential partners. This included OpenAI CEO Sam Altman, at a recent conference dinner.
The Situation with TikTok in the US
TikTok’s future in the United States hangs in the balance as lawmakers propose the “Protecting Americans from Foreign Adversary Controlled Applications Act.” The parent firm of TikTok, ByteDance, would be forced by this widely supported bill to sell the platform within a given time limit or risk being blocked from US app shops and web hosting providers.
Kotick’s Interest in TikTok
Kotick’s interest in TikTok follows his departure from Activision amidst a merger with Microsoft and a period marked by a discrimination lawsuit against the company. Despite leaving with a substantial compensation package, Kotick would require substantial financial backing to pursue TikTok.
His tenure was marked by controversy including allegations of fostering a “pervasive frat boy workplace culture” and failing to disclose misconduct and assault allegations to the board. Despite these challenges, Kotick remained with the company until the completion of Microsoft’s acquisition in 2023.
Kotick has reportedly approached Zhang Yiming, ByteDance’s executive chair, to express his interest in purchasing TikTok. The acquisition would likely require substantial financial backing, as the app is valued in the hundreds of billions of dollars. Kotick is also exploring partnerships that could potentially integrate AI technology from OpenAI into TikTok.
Political and Business Implications
The potential acquisition of TikTok by Kotick raises political and business implications. President Biden has indicated his support for the legislation and would sign it if it passes both the House and Senate. The purchase could inject hundreds of billions of dollars into the deal making it a significant transaction in the tech and social media landscape.
But the bill’s passage is not guaranteed as it faces potential challenges in the Senate, including concerns about free speech and the impact of banning a popular app among young voters.
