The Biden administration is threatening to ban TikTok from the U.S. unless the app’s Chinese owners agree to spin off their share of the controversial social media platform. Hedgeye’s Telecom and Media Policy analyst Paul Glenchur says the question now is whether that’s actually feasible.
“We’re getting to the point where it’s going to be shit or get off the pot with the administration as the national security concerns continue to escalate, and it becomes a political leverage issue for Republicans as well,” Glenchur explains in this clip from The Call @ Hedgeye.
A shutdown or forced sale to U.S. entities raises speculation about the impact on competing social media platforms and domestic entities that could acquire the hugely popular social media app now owned by China's ByteDance.
“The basic point is that it has ripple effects on stocks of social media companies,” Glenchur adds. “There’s speculation from Microsoft, Oracle and Walmart of who could buy it—which is all contingent on if it can even happen.”
TikTok CEO Shou Zi Chew is scheduled to testify before the House Energy and Commerce Committee next Thursday. The dialogue with lawmakers could offer additional insight into a resolution of the TikTok situation.