The Information reports that Kotick seems to be waiting for Donald Trump to assume office before taking further action, though. As you probably have heard, TikTok faces a looming deadline of January 19 to divest ties with its Chinese parent company, ByteDance, or face a US ban under a law passed earlier this year. With Trump set to take office on January 20, he could potentially delay enforcement of the ban for 90 days, creating an opportunity for Kotick and other potential buyers to pursue negotiations.
Kotick, who first expressed interest in TikTok earlier this year, has not yet made an offer to ByteDance’s shareholders, insiders say. His timeline suggests that if the ban takes effect, even temporarily, negotiations might accelerate once the new administration takes over.
Meanwhile, ByteDance is challenging the law in court, seeking an emergency delay to allow time for a Supreme Court appeal or talks with the new administration.
But will ByteDance sell at all? So far, there are no indications that it will. In fact, the company said it won’t sell.
Despite the legal challenges, ByteDance hasn’t indicated a willingness to sell TikTok, and any sale would likely require approval from the Chinese government. China’s export controls on software algorithms, including the ones TikTok uses to recommend videos, add further complexity to any potential deal.
However, Kotick believes his long-standing connections in China, developed during his tenure at Activision through partnerships with major Chinese companies like Tencent and NetEase, give him a competitive edge. He also has a personal connection with ByteDance founder Zhang Yiming, which could facilitate discussions.
Personally, I don’t think these personal connections will help, if ByteDance and the Chinese government decide not to sell.