Will TikTok become the new Twitter? A rich former CEO is considering buying the social media platform.
Do you remember? It was 2022, the world was just getting used to the Covid-19 pandemic, and a billionaire announced that he wanted to acquire one of the world’s largest social media platforms. At the time, many dismissed it as mere boasting, and the deal indeed dragged on, making it seem like a huge PR stunt. But in the end, he actually did it: Elon Musk bought Twitter.
Why am I bringing this up again? Well, something similar might be happening soon with TikTok.
Former Blizzard CEO Announces Plans On Purchasing TikTok
TikTok is at least as controversial as it is successful. So controversial, in fact, that in the USA a bill was voted on to ban the video platform as a result of concerns regarding user data being shared with the Chinese government. The Energy and Commerce Committee voted 50 to 0 in favor of the bill, which called on the Chinese company ByteDance, the parent company of TikTok, to divest itself from the TikTok app within 6 months.
In the next step, the bill must be approved by additional government agencies and then signed by the president. If that happens, a first potential buyer has emerged who would want to acquire the platform, and this person is no stranger.
According to The Wall Street Journal, Bobby Kotick, the former CEO of Activision Blizzard, expressed interest in a partnership with ByteDance co-founder Zhang Yiming. He also mentioned this at a conference dinner with OpenAI CEO Sam Altman. OpenAI could use TikTok to train its AI models if a partner like Kotick could provide the capital for such an acquisition.
The parallels to the Twitter deal don't end here, however. Just like Musk, Kotick is a controversial figure.
Who Is Bobby Kotick?
During his tenure as the CEO of Activision Blizzard, there were several controversies that tarnished his reputation. One of them was his high compensation and severance package, especially when Activision Blizzard was acquired by Microsoft. Critics viewed this compensation as excessive and disproportionate.
Additionally, there were concerns about Kotick's business strategy, particularly regarding monetization practices such as excessive microtransactions and DLCs in Activision Blizzard's games, which some viewed as exploitative.
Another significant controversy was theaccusation of sexual harassment against Activision Blizzard. The company was accused of fostering systematic sexual harassment and discrimination.
Nevertheless, California's Civil Rights Department (CRD) chose to voluntarily withdraw the case and asserted that "no court or independent investigation has substantiated any allegations." Additionally, the CRD maintains that there is no evidence of wrongdoing by Bobby Kotick.
It may not be set in stone that Kotick will actually acquire TikTok. However, what is certain is that something will change for TikTok in the USA. Whether it will ultimately be banned or bought by another company remains to be seen.
Update: This article has been updated to reflect the fact that the Civil Rights Department has voluntarily withdrawn its case against Activision after finding no evidence of wrongdoing.