ByteDance, TikTok’s parent company, may sell over 50% of TikTok U.S. but keep a minority stake. The sale options being discussed wouldn’t include the algorithm that powers TikTok. This has sparked a tech mystery that has left the industry buzzing with speculation.
The Secret Sauce.
ByteDance is reportedly considering selling TikTok without the algorithm to someone outside the tech industry
Via: The Information PIC.TWITTER.COM/BTPZGQ7HMJ
— Dexerto (@Dexerto) APRIL 25, 2024
The algorithm that TikTok relies on for its operations is deemed core to ByteDance’s overall operations. This algorithm is what made TikTok a sensation and it’s also what makes the app a little bit spooky. It’s the company’s secret sauce. As you scroll through the For You Page (FYP), the makeup of videos you’re presented with slowly begins to change, until, the app’s regular users say, it becomes almost uncannily good at predicting what videos from around the site are going to pique your interest. It is, therefore, virtually unlikely to agree on the sale with the user including the algorithm.
TikTok owes much of its popularity to the algorithm. The FYP is the default screen displayed to new users upon opening the app. You’re going to be exposed to a rapidly revolving door of short clips taken from what the service thinks is popular even though you have yet to follow a single other account. This is how TikTok keeps it interesting when you start using it. However, without its algorithm, it is impossible for TikTok to keep the level of popularity it now maintains.
Indeed, potential buyers for the social platform have already lined up. On this news, former Treasury Secretary Steven Mnuchin announced on CNBC. The reasons why ByteDance is looking for a buyer among non-tech companies remain confidential . Although, it is possible that mega-high antitrust risks will not allow a large tech company to acquire TikTok. It is conceivable that with watchdogs that could block Meta or Alphabet from acquiring TikTok.
The future of TikTok U.S. still hangs in a balance as ByteDance tries to sell its crown jewel — without its core technology. and the consequences of this unprecedented offering on the social media frontier are nothing short of magnificent. Play the tech thriller and watch. TikTok, the world’s most famous app, is open for bidding. Given the importance of its secret sauce, the algorithm, there’s no doubt its prospects are uncertain.
