The popular short video platform TikTok (TikTok Overseas Edition) has approached streaming giant Netflix to “evaluate its interest in acquiring TikTok’s US business.” It is reported that Netflix has accepted the invitation to negotiate with TikTok’s parent company ByteDance. Faced with the threat of the US ban, TikTok is considering selling its US business.
Since the Trump administration first publicly stated its intention to force TikTok to sever its relationship with its parent company, or face a national ban, Netflix has only been one of several technology companies involved in acquisition negotiations with TikTok. TikTok’s US business is valued at between 10 billion and 50 billion U.S. dollars. The high price means that few American technology companies have enough funds to acquire this popular app.
Regarding buyers interested in acquiring TikTok’s US business, rumors include Twitter, Alphabet and Apple . Recently, the corporate technology giant Oracle has also become a potential buyer and quickly attracted verbal support from Donald Trump.
As for Netflix, analyst Alex Sherman believes that TikTok will bring Netflix a platform based on advertising revenue, enabling the streaming media service company to continue to provide advertising-free entertainment services. Netflix CEO Reed Hastings (Reed Hastings) this year called TikTok a competitor in the “Internet entertainment” space.
So far, the only company that has publicly expressed interest in acquiring TikTok’s business is Microsoft. The company confirmed in early August that it had negotiated with ByteDance to acquire TikTok’s business in the United States, Canada, New Zealand and Australia. Trump gave Microsoft 45 days to acquire TikTok from ByteDance.
According to reports, Microsoft and ByteDance signed a “non-binding letter of intent” at the end of July. This is an important step in the acquisition process, indicating that negotiations between the two companies are advancing.
However, it is not clear how the negotiations are progressing, as TikTok is challenging the Trump administration ban. Since late July, Trump has issued two separate executive orders against TikTok, and set a deadline of mid-November, requiring Bytedance to sell TikTok’s US business.
TikTok has filed a lawsuit against the Trump administration to challenge the US ban. The focus of this lawsuit is Trump’s August 6 executive order that prohibits “any transaction” between Bytedance and American citizens. TikTok argued that the US government had violated its “due process rights” by failing to notify the company before the executive order was issued, and accused the US government of lacking evidence to support its argument.
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