this post was submitted on 18 Mar 2024
131 points (92.8% liked)

World News

32372 readers
391 users here now

News from around the world!

Rules:

founded 5 years ago
MODERATORS
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
131
Americans Invested Billions in Chinese Companies. Now Their Money Is Stuck. (www.nytimes.com)
submitted 8 months ago by [email protected] to c/[email protected]
30 comments fedilink hide all child comments
you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 41 points 8 months ago (2 children)

It'd be really funny if ByteDance doesn't sell and TikTok getting banned crashes the economy.

[–] [email protected] 6 points 8 months ago (2 children)

Given the CCP involvement in their country's businesses, I think there will be a lot more involved than would be in other sales. There are already articles talking about how the sale will take longer than the 6-month timeline (if it passes the Senate/President and any potential legal challenges).

[–] [email protected] 6 points 8 months ago (1 children)

Any sale of a hundred+ billion dollar company takes years. Look at the attempted acquisition of ARM.

[–] [email protected] 7 points 8 months ago (1 children)

Uh...TikTok is not ARM, or anything close to resembling it.

The US justification for forcing the sale of TikTok may be horseshit political theater for dubious reasons, but that doesn't close the gap of making a TikTok sale anywhere close to resembling ARM.

[–] [email protected] 5 points 8 months ago (1 children)

$16B US revenue, doubling YoY, gross margin likely in the 70s. Even at the P/S of an established company like Facebook, TikTok's US operations would be worth on the order of $200B. That's on par with the largest acquisitions in history and dwarves Nvidia's acquisition attempt of ARM.

[–] [email protected] 7 points 8 months ago

Relative valuations aren't the key differences, it's what the companies do, and what they support.

ARM technology powers the vast majority of mobile devices, and is estimated to have upwards of 30% of the PC CPU market share by 2026.

It's sale, or acquisition, is more than a pissing match between two great powers.

[–] [email protected] 5 points 8 months ago

I don’t see there being a sale at all. ByteDance isn’t gonna sell the world’s hottest social media platform simply because a foreign country demands it, and even if it were a lucrative enough offer to be tempting, the CPC wouldn’t allow it anyway. If something like this happened in the other direction, I think 1/4 of the US Senate would go into cardiac arrest on the spot, and there’s exactly a 0% chance it would be allowed to happen