NBC News - Investor group aiming to bid for TikTok explains how it would change the app
The Supreme Court is set to hear a challenge to a law that could lead to TikTok being banned in the U.S. by January 19th unless its Chinese owners, ByteDance, sell it. Project Liberty, led by Tamika Tillman, is preparing a $20 billion bid to acquire TikTok, aiming to prevent its shutdown and maintain its user experience. The acquisition process would involve the Committee on Foreign Investment in the United States (CFIUS), which will determine qualified bidders. Project Liberty plans to keep TikTok's user experience consistent initially but aims to shift control of content and data to users in the long term. They also intend to move away from TikTok's current attention-based model to a more deliberate user experience. The U.S. version of TikTok is criticized for being more addictive than its Chinese counterpart, and Project Liberty seeks to address this by offering a more balanced and engaging platform.
Key Points:
- TikTok faces a potential U.S. ban unless sold by January 19th.
- Project Liberty proposes a $20 billion bid to acquire TikTok.
- The acquisition process involves CFIUS to approve qualified bidders.
- Project Liberty aims to shift control of content and data to users.
- They plan to move away from TikTok's addictive model to a balanced experience.
Details:
1. 📱 TikTok's Legal Battle: Supreme Court Challenge
- The Supreme Court is set to hear a challenge to a law that could potentially lead to TikTok being banned in the U.S. within less than three weeks.
- The law in question is designed to address national security concerns related to foreign-owned apps, particularly those from China.
- TikTok's legal team is preparing to argue that the law violates free speech rights and lacks sufficient evidence of security threats.
- The outcome of this case could set a precedent for how foreign technology companies operate in the U.S.
- If the law is upheld, it could lead to increased scrutiny and regulation of other foreign-owned apps.
- The case highlights the ongoing tension between national security and digital freedom in the U.S. regulatory landscape.
2. 💰 Project Liberty's $20 Billion Bid
- Project Liberty is prepared to make a $20 billion bid to acquire TikTok if its Chinese owners are forced to sell.
- The bid is positioned as a 'people's bid,' suggesting a focus on user-centric ownership or management.
- The urgency of the bid is tied to a legal deadline of January 19th, after which TikTok could be banned for 170 million American users if not sold.
- The 'people's bid' concept implies a potential shift towards more democratic or decentralized control, possibly involving user participation in governance or profit-sharing.
- If successful, this acquisition could prevent the ban and maintain access for TikTok's 170 million American users, preserving their engagement and data continuity.
3. 🤝 Negotiations and Legalities: Defining the Sale
3.1. Negotiation Details
3.2. Legal Considerations
4. 🇺🇸 U.S. Legal Mandates: Divestment Deadline
4.1. Legal Mandate for ByteDance Divestment
4.2. Implications of Non-Compliance
5. 🛡️ CFIUS Approval Process: Who Decides?
- The Committee on Foreign Investment in the United States (CFIUS) is responsible for approving foreign purchases, functioning similarly to a sports league determining qualified bidders.
- CFIUS evaluates foreign investments based on national security concerns, ensuring that transactions do not pose risks to U.S. interests.
- The committee has significant influence over the approval process, with the authority to block transactions that fail to meet security standards.
- CFIUS's decision-making process involves a thorough review of the potential impact on national security, considering factors such as the foreign entity's background and the nature of the U.S. business involved.
6. 🔄 Potential Changes to TikTok: User Control and Experience
- TikTok aims to maintain a consistent user experience in the near term, while planning medium-term changes to enhance user control over information, content, and relationships.
- Users should be able to move their content and relationships across different apps, promoting interoperability.
- TikTok plans to transition from an attention-based economy to a model where users deliberately choose the experiences, content, goods, and services they interact with.
- The shift from an attention economy to a more deliberate engagement model is expected to improve user experience.
7. 🌍 TikTok's Global Differences: US vs. China Versions
- The US version of TikTok is not available in China and operates on different parameters compared to the Chinese version.
- The Chinese version of TikTok is described as feeding users 'vegetables,' implying more educational or beneficial content, whereas the US version is likened to 'junk food,' suggesting more addictive and less productive content.
- There is a theory that the American version of TikTok is intentionally more addictive to reduce productivity by keeping users engaged in endless scrolling.
- The goal is to create an engaging and dynamic experience while allowing users to identify what they want from the app in their lives.