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Was it trivial for Trump mulling to ban TikTok?

It depends.

In fact it is one of the many “crazy” yet “must do” moves that he has implemented to stir unrest between the US-China trade war.

*****

𝗕𝗔𝗖𝗞𝗚𝗥𝗢𝗨𝗡𝗗

ByteDance is the world’s most valuable privately-held tech company, worth more than USD $100 Billion. They also own TikTok, the social entertainment app, which is a viral short form mobile video-sharing app. 📱

It has projected to earn up to US$1 billion and US$1.4 billion in revenue this year. But there are reasons why time is running out for TikTok.

𝟭. 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗧𝗵𝗿𝗲𝗮𝘁

The United States has been increasingly scrutinising app developers over the personal data they handle, especially if some of it involves US military or intelligence personnel.

And it so happens that TikTok is one of the most popular app that has gotten the defence department’s knickers in a twist.

𝟮. 𝗗𝗮𝘁𝗮 𝗖𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻. . . 𝗔𝗻𝗱 𝘄𝗵𝗼 𝗿𝗲𝗰𝗲𝗶𝘃𝗲𝘀 𝗶𝘁?

TikTok has a robust algorithm that uses a number of factors to program its suggestions of 15-second clips.

Theses include user interactions, such as the videos a user likes or shares, accounts they follow, and comments posted as well as video information such as sounds and hashtags.

One of the strongest indicators of interest is whether a user finishes watching a longer video from the start to finish. This would add greater weight to the recommendation algorithm than other factors such as geolocation.

The app then sells data, with your consent (just like Facebook, IG, Snapchat!) to other marketers.

With such powerful algorithms, it’s no wonder why the US is so paranoid that it may be weaponised by China. Imagine foreign governments being able to push political content to your local audience via advertising.

WHO WINS?
Actually ByteDance can still win in this Tech-War.

BYTEDANCE
One golden goose has to be sacrificed in other to save the other golden geese in the farm.

Under the new proposed deal, ByteDance would exit completely and Microsoft Corp, among other American-Tech firms, may take over TikTok in the United States.

By selling TikTok, ByteDance will be able to amass liquid cash ahead of its IPO in HK and Shanghai next year. While this forced sale may not yield it the best returns, there is no doubt that others will recognize the value that TikTok can bring to the table.

OTHER TECH FIRMS?
During this impasse, Facebook may stand to gain, as it readies its own version to push to its followers.

As for whether Microsoft or any other of the tech firms be able to handle the magnetic allure of TikTok, this would depend on their strategic and tactical plans for their acquisition.

WHAT’s IN IT FOR YOU?

👾Unless you rely on TikTok heavily in your entertainment. . . This probably doesn’t matter.

💰 Unless you rely on TikTok heavily to create branding and make income, beware on how the algorithm will change as ownership changes.

🌊 Expect rougher waters ahead of the global funds and stocks market. But as long as you have the ready cash to invest, do it at a regular interval.

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