Amid concerns of Chinese short video platform, TikTok, potentially shutting down in the United States (US), former Activision CEO, Bobby Kotick, is reportedly aiming to purchase the popular social media platform.
TikTok, owned by China-based parent company ByteDance, has faced scrutiny from US lawmakers over fears of data privacy and national security risks associated with its Chinese ownership. With new legislation looming that could force ByteDance to sell TikTok or face closure, Kotick has emerged as a potential buyer.
Reports from the Wall Street Journal indicate that Kotick has approached ByteDance founder, Zhang Yiming, to express his interest in acquiring TikTok. However, the acquisition won’t come cheap, with estimates placing the price tag in the hundreds of billions.
Kotick, known for his tenure as CEO of US gaming company, Activision Blizzard, pitched the idea to a group that included OpenAI CEO Sam Altman. The move comes as TikTok’s mobile app sales reached record highs in revenue, surpassing $10 billion in cumulative user spending in 2023.
TikTok’s future in the US has been uncertain for some time, with former President Donald Trump’s administration considering various measures to ban the platform. Despite legal challenges and lawsuits, concerns over cybersecurity risks persist, leading some states like Maryland to impose bans on TikTok’s use on government devices.
Kotick’s interest in TikTok follows his departure from Activision Blizzard at the end of 2023, following the closure of Microsoft’s acquisition of the gaming giant. Reports suggest Kotick received a payout of nearly half a billion dollars upon his exit.
