Makes the children screaming we are taking their toy away seem even more oblivious when the billion dollar corporation gives absolutely zero shits about losing the business.
The article talks about why they’d prefer to shut down if you take their word it. Essentially the US is such a tiny portion of ByteDances revenue, it would be more optimal to shut down then to risk the sale of their algorithm. Assuming they’re using relatively similar algorithms on Douyin, and they don’t want whoever they sell to to turn around and sell to their Chinese competition, which is where the real money is being made for ByteDance.
Average revenue per user is a pretty common industry benchmark, and the US absolutely slaughters the rest of the world. We’re the fat, dumb, brainwashed cows the advertisers can’t get enough of.
Is that really justified, or an example of selection bias?
There’s a reason you couldn’t actually talk about the ARPU, and that’s because an American user is worth literally 7x more than a Chinese user on average. Which is why TikTok had a revenue of 16.1b in 2023, with a growing user base, and ByteDance’s total revenue was 40.8b.
The way you are speaking it’s as if they mean to close down the whole thing. There is a whole rest of the world for them to operate in. Sure losing the US market be a huge detriment, but the owners still might rather have it everywhere else, than keep it running in the US in someone else’s hands.
They aren’t being forced to sell their operations in the entire world, just the US. So, doesn’t it make better financial sense, if all legal options to keep control fail, that they sell their US operation to another company, and at least get billions of dollars before exit, than to just lose the market and get not billions?
A thing never mentioned in these debates is that noone in the world is buying tiktok without buying the underlying algorithm, the same algorithm the app runs on worldwide, the algorithm is the special sauce. They are not going to sell the basis for their app just for a single payday in the US market, which after buying it, they could rebrand and then once successful in the US, compete in the global market against tiktok but with the income of the most lucrative app market in the world behind them. It’s an extremely stupid business move.
They have a leg up, they would have to use their early footing to compete. If they go, the vacuum of their loss of presence will open a spot for an american tech company to copy them. Either way, they are going to get competition from an american tech company. Nothing they are doing is esoteric in a way that would make them hard to copy. There really is no secret sauce, so to speak, in the software. If they are doing it to hide something then then it lends credence to the US’s accusations, at least it leaves a grey area for that speculation. This gives the US a big avenue to push that they are right and everyone should be cautious of their media business.
It’s obviously pretty valuable. How would we feel if say, China decided Microsoft/Google/AWS/Oracle had to sell to a Chinese company on the grounds of national security? They’d rather pull out too, despite China being a very large market too. Or what happens if other countries starts demanding the same?
Pretty sure ByteDance would rather keep their IP.
And if they sell, do they keep the rights for the other countries or it belongs to the US now?
How would we feel if say, China decided Microsoft/Google/AWS/Oracle had to sell to a Chinese company on the grounds of national security?
But no one is saying that ByteDance has to sell TikTok to a US company. Just divest it to an owner that is not beholden to the Chinese government and obligated to share any and all data upon request. Compared to the legal requirements that China puts on US companies operating in China, this is a pretty tame ask.
Yeah but the 5 Eyes and their friends are everywhere outside of the CCPs borders. So if they really don’t want to let the US have that algorithm, and probe the interfaces the CCP propaganda arm used to access the TikTok backend, there’s few places overall that have a reason to buy it, and can also afford it.
They wouldnt have to sell their IP even just the userbase and videos would be valuable enough to let someone else plug in an algorithm. Then again, i suppose this could all just be bluster.
AWS already had to effectively do this. AWS only exists in two regions in China because they licensed much of the AWS software to be run by a pair of Chinese-government affiliated ISPs inside China (that is, Amazon doesn’t run AWS in either of its China zones — it’s run by a pair of Chinese companies who license AWS’s software).
This is why the China AWS regions are often quite far behind in terms of functionality from every other region (they either haven’t licensed all the functionality, they don’t keep up-to-date at the same cadence as Amazon, or Amazon is holding certain functions back), and why you can’t really access them from the standard AWS console.
So in effect, Amazon did have to give their software to Chinese-government affiliated companies in order to continue operating in China.
It’s a scare tactic. You as a customer won’t care if the business gets a new owner but if they threaten to shut down all the kids they have will start kicking and screaming to make the government dial back the decision.
Isnt that pretty damn suspicious? We’d rather just shut down than sell it as a going concern?
Makes the children screaming we are taking their toy away seem even more oblivious when the billion dollar corporation gives absolutely zero shits about losing the business.
We? Are you in congress being lobbied by Alphabet and Meta?
The article talks about why they’d prefer to shut down if you take their word it. Essentially the US is such a tiny portion of ByteDances revenue, it would be more optimal to shut down then to risk the sale of their algorithm. Assuming they’re using relatively similar algorithms on Douyin, and they don’t want whoever they sell to to turn around and sell to their Chinese competition, which is where the real money is being made for ByteDance.
Bullshit, they’re bluffing at best.
Average revenue per user is a pretty common industry benchmark, and the US absolutely slaughters the rest of the world. We’re the fat, dumb, brainwashed cows the advertisers can’t get enough of.
Is that really justified, or an example of selection bias?
Does it matter to a shareholder?
Not really. It depends on what it is. There are entire games and items that aren’t available in the US, but make a killing in Asia.
Like, here’s Genshin Impact numbers from 2023.
On that game, the US comes in at 7th, is less than half of the top country (Japan) and is notably behind Switzerland.
For Tik Tok specifically, we can look at their annual reports.
Let’s look at average annual users per region. 682M in Asia Pacific, which does not include China. 192M in North America.
China’s numbers are 750M daily.
I don’t think most of their money comes from the US.
There’s a reason you couldn’t actually talk about the ARPU, and that’s because an American user is worth literally 7x more than a Chinese user on average. Which is why TikTok had a revenue of 16.1b in 2023, with a growing user base, and ByteDance’s total revenue was 40.8b.
No?
The way you are speaking it’s as if they mean to close down the whole thing. There is a whole rest of the world for them to operate in. Sure losing the US market be a huge detriment, but the owners still might rather have it everywhere else, than keep it running in the US in someone else’s hands.
They aren’t being forced to sell their operations in the entire world, just the US. So, doesn’t it make better financial sense, if all legal options to keep control fail, that they sell their US operation to another company, and at least get billions of dollars before exit, than to just lose the market and get not billions?
A thing never mentioned in these debates is that noone in the world is buying tiktok without buying the underlying algorithm, the same algorithm the app runs on worldwide, the algorithm is the special sauce. They are not going to sell the basis for their app just for a single payday in the US market, which after buying it, they could rebrand and then once successful in the US, compete in the global market against tiktok but with the income of the most lucrative app market in the world behind them. It’s an extremely stupid business move.
But what if the US version becomes a different version than the rest of the world’s? What if the rest of the world wants that version and demands it?
They have a leg up, they would have to use their early footing to compete. If they go, the vacuum of their loss of presence will open a spot for an american tech company to copy them. Either way, they are going to get competition from an american tech company. Nothing they are doing is esoteric in a way that would make them hard to copy. There really is no secret sauce, so to speak, in the software. If they are doing it to hide something then then it lends credence to the US’s accusations, at least it leaves a grey area for that speculation. This gives the US a big avenue to push that they are right and everyone should be cautious of their media business.
Then they change it to match.
It’s obviously pretty valuable. How would we feel if say, China decided Microsoft/Google/AWS/Oracle had to sell to a Chinese company on the grounds of national security? They’d rather pull out too, despite China being a very large market too. Or what happens if other countries starts demanding the same?
Pretty sure ByteDance would rather keep their IP.
And if they sell, do they keep the rights for the other countries or it belongs to the US now?
But no one is saying that ByteDance has to sell TikTok to a US company. Just divest it to an owner that is not beholden to the Chinese government and obligated to share any and all data upon request. Compared to the legal requirements that China puts on US companies operating in China, this is a pretty tame ask.
Yeah but the 5 Eyes and their friends are everywhere outside of the CCPs borders. So if they really don’t want to let the US have that algorithm, and probe the interfaces the CCP propaganda arm used to access the TikTok backend, there’s few places overall that have a reason to buy it, and can also afford it.
They wouldnt have to sell their IP even just the userbase and videos would be valuable enough to let someone else plug in an algorithm. Then again, i suppose this could all just be bluster.
They don’t let our stuff operate there. It’s only fair we treat them the same.
But we aren’t them… right?
AWS already had to effectively do this. AWS only exists in two regions in China because they licensed much of the AWS software to be run by a pair of Chinese-government affiliated ISPs inside China (that is, Amazon doesn’t run AWS in either of its China zones — it’s run by a pair of Chinese companies who license AWS’s software).
This is why the China AWS regions are often quite far behind in terms of functionality from every other region (they either haven’t licensed all the functionality, they don’t keep up-to-date at the same cadence as Amazon, or Amazon is holding certain functions back), and why you can’t really access them from the standard AWS console.
So in effect, Amazon did have to give their software to Chinese-government affiliated companies in order to continue operating in China.
It’s a scare tactic. You as a customer won’t care if the business gets a new owner but if they threaten to shut down all the kids they have will start kicking and screaming to make the government dial back the decision.