The looming TikTok ban is right around the corner unless ByteDance divests ownership of the platform to a US company, something that the parent company's investors may benefit from, said US Representative Mike Gallagher. The congressman is one of the known chairs of the US-China dispute, heading the committee that recently saw approval from its House floor vote.
Additionally, Gallagher claims that the TikTok sale may happen before the US Presidential elections later this year.
ByteDance Investors to Benefit from TikTok Sale, says Gallagher
(Photo : ROBERTO SCHMIDT/AFP via Getty Images)
CBS News reported that US congressman Mike Gallagher expressed about the TikTok sale, stating that ByteDance investors may benefit financially from the sale of the platform in the future. Gallagher claimed this on CBS' Face the Nation last Sunday, with the representative best known for spearheading the bill.
"It would be in the financial interest of ByteDance's investors to effectuate before sale," said Gallagher.
He further noted that, apart from this, the sale may change TikTok's user experience, increasing its value as it moves away from "propaganda" and its current Chinese ownership.
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TikTok Sale May Happen Before US Elections
That being said, Gallagher is confident that this TikTok sale may take place before the upcoming US Presidential elections later this November, with the bill's current track. Not selling the platform could ultimately lead to a ban, with the soon-to-be-signed law designating it as a foreign-controlled platform operating in the country.
Illinois rep. Raja Krishnamoorthi claimed that TikTok is unlike any other "threats" seen before, arguing that a foreign adversary, China, controls it.
TikTok Ban and the RESTRICT Act
Last week, the House passed the RESTRICT Act, which could lead to a TikTok ban if the social media platform does not abide by the rules and regulations of the law when it comes into effect. In this passed bill, agencies may identify TikTok as a foreign entity and possibly ban it if it does not divest it to an American company, giving it around 180 days for the restriction to take effect and see a sale.
This is the only step awaited by US President Joe Biden, who previously expressed his stand on this issue, saying that if the House passes it, he will sign the bill into law, which would then take effect.
While no confirmed buyers exist for this TikTok sale, former Activision Blizzard CEO Bobby Kotick expressed his interest in purchasing the platform, pitching this idea to other tech entrepreneurs for possible collaborations.
Despite the bill not yet being signed into law, TikTok's days are numbered as it is only awaiting the signing from POTUS Biden before this takes effect shortly, possibly before the upcoming elections. That being said, this sale would benefit ByteDance investors, said Gallagher, one that would keep the platform operational in the US and see financial perks for the Chinese stakeholders.
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