TikTok Ban or Forced Sale: Meta and Google Expected to Benefit
The proposed legislation for a TikTok ban or forced sale has been a topic of concern for several months. The bill could significantly impact the future of TikTok in the U.S., as it faces scrutiny in Congress over concerns that ByteDance, its Chinese parent company, could comply with the Chinese government in actions liable to undermine national security.
Analysts at Wedbush believe that while Microsoft and Oracle have expressed interest in acquiring TikTok, the real winners could be Meta Platforms and Alphabet. The analysts surveyed TikTok users and found that 60% said they’d use Meta’s Facebook or Instagram, while 19% said they’d use YouTube.
Meta Platforms, with its strong Reels offering, is seen as the most likely candidate to benefit from this scenario. The company’s Reels reached a $10B run rate in 3Q.
The proposed legislation has raised concerns over the U.S. government’s excessive power over online expression and business operations, but it remains to be seen whether the bill will be signed into law.
