Meta Platform, Inc. executives, including CEO Mark Zuckerberg and CFO Susan Li, showed caution when responding to a question about the possible impact of the TikTok ban or sale on the social media landscape in the United States.
During the company’s first-quarter earnings call on Wednesday, Li stated that it was too early to ascertain the impact on Meta’s business when asked about the TikTok ban. Li’s remarks came in response to a question from Youssef Squali of Truist Securities, who asked Zuckerberg, “Mark, with the impending ban or sale of TikTok ending a lot earlier today, how do you anticipate that will affect the social media landscape in the United States?” Squali also posed the question, “What do you say to those who think this is potentially a slippery slope in terms of the government picking winners and losers?”
Zuckerberg chose not to answer the question, prompting Li to respond, “We’ve been meticulously monitoring the events connected to TikTok, but at this time, I believe it is simply too soon to analyze its impact or what it might signify for our operations.”
The TikTok ban has become a topic of intense debate in the tech sector. The ban or sale of TikTok was made possible after the U.S. House of Representatives and Senate approved a bill, which President Joe Biden signed into law on Wednesday. TikTok CEO Shou Zi Chew has announced that they would resist. “Make no mistake, this is a ban, a ban on TikTok, and a ban on you and your voice,” he said in a two-minute video posted to TikTok’s main corporate account.
Former President Donald Trump has repeatedly criticized the potential TikTok ban, alleging that President Biden is assisting Facebook, headed by Zuckerberg, in gaining greater influence over social media platforms and potentially interfering in elections, to the detriment of Republicans.
Meanwhile, Wedbush analysts believe that Microsoft Corp. and Oracle Corp. could be the “probable purchasers” of TikTok, but Meta and Google may emerge as victors. “We would expect Meta to be the main recipient of redistributed TikTok revenue if the company exits the U.S., with Google likely being the second-largest beneficiary.” Dan Ives of Wedbush previously discussed the potential consequences of a TikTok ban for major technology companies, characterizing the situation as a “slippery slope” and a “watershed moment.”
