TikTok, which is basically everyone’s favorite time-wasting app, is currently caught in a sticky situation. A bill is on the table that could potentially ban the video-sharing platform in the U.S., unless it sells off to a new owner. And guess what? Bobby Kotick, the ex-bigwig at Activision Blizzard, is rumored to be one of the interested buyers. Sources from the Wall Street Journal spilled the beans on this juicy gossip.
For years, U.S. lawmakers have been eyeing TikTok with suspicion, claiming that its Chinese parent company, ByteDance, might be sharing user data with the Chinese government. They even think the app could be used as a tool for spreading propaganda. The tension reached a boiling point recently when the House Energy and Commerce Committee pushed through a bill that puts the heat on ByteDance to either sell off TikTok or face the consequences of a ban in the U.S. President Joe Biden has already made it clear that he’s on board with the ban if the bill gets the green light from Congress.
Now, let’s talk about Kotick. After waving goodbye to Activision Blizzard last year following a mega $68 billion sale to Microsoft, he’s apparently looking to get his hands on TikTok. Reports suggest that Kotick has been chatting with ByteDance’s co-founder about a potential buyout and is even scouting for partners, with Sam Altman from OpenAI being one of the names in the mix. The Wall Street Journal hinted that OpenAI could use TikTok to beef up its AI training if Kotick can rustle up the cash for the acquisition. The sale of TikTok could rake in hundreds of billions of dollars, so it’s no small potatoes.
In 2021, Kotick’s reign at Activision Blizzard was marred by a lawsuit from California over allegations of sexual harassment and discrimination. However, all those claims were later dismissed, and the state ended up settling with Activision Blizzard for a cool $54 million to put the matter to bed. The settlement included a statement asserting that no concrete evidence of systemic harassment or discrimination was found at the company. Even a former chair of the EEOC gave Activision Blizzard a thumbs up after reviewing their policies and practices, saying there was no widespread harassment going on. Kotick walked away from the whole ordeal with a cushy $15 million golden parachute.
So, as the TikTok saga unfolds, keep your eyes peeled for updates on who swoops in to rescue the app from the brink of a U.S. ban. Who knows what twists and turns await in this high-stakes game of tech acquisitions? Stay tuned, folks.
