TikTok, the popular short-video social-media service, is set to generate $14.2 billion in revenue in 2023, according to eMarketer, up 43% from the previous year and a tenfold increase since 2020. However, it faces threats from the US government, foreign governments, and other institutions concerned about the risk of the app being a tool for China to spy on Americans and distribute propaganda. Congress is now debating whether to enact a ban, President Joe Biden is considering it, and the courts would most likely challenge the law on First Amendment grounds if it passes. Three possible paths lie ahead for TikTok: status quo, a ban, or ByteDance spinning off, selling, or divesting its ownership in TikTok to US-based owners, severing ties with China. If there is a ban, Morgan Stanley predicts that Facebook, Google, and Snap will benefit the most from the increased ad dollars that TikTok users would bring to their platforms.
Tik Tok Recap
April 05, 2023|