Anybody with that kind of financing readily available is throwing it at AI and not another social network, no matter how useful it might be for domestic propaganda.
Don’t need trust when you have the second most powerful state entity backing you. Corporate America has a complete jammed full history of its interests getting screwed over by foreign entities only for the US government to step in either with military force or some coercive measure resulting in a corrective action. Im sure China is well aware of this playbook and are probably apt to copy it too.
Why would the US government be involved in paying tens of billions ?
The idea is that ByteDance would sell it to Meta, X, etc and would be a private transaction.
Just like happens in China and in many other countries.
The CCP would not miss out on taking advantage of the situation and demanding trade concessions for agreeing to sell. US government would absolutely be involved in raising the necessary finance, as banks won't be bending over backwards to lend Musk money for another speculative venture.
Congress doesn't appear to care if TikTok survives or not. TikTok bans are not news.
* If ByteDance divests their US TikTok operations, they create a new competitor that could potentially out-compete them in other (non-US, non-Chinese) markets.
* Whatever amount of money they get for this divestiture would be much lower than what the business is worth to ByteDance (when your options are sell or shut down, potential buyers will not feel the need to bid high).
* ByteDance's US TikTok operations are certainly of non-financial value to the Chinese government. That value is likely orders of magnitude higher than their financial value to ByteDance. Selling that user base is probably not preferable to shutting down. Influence campaigns are certainly easier to run on a platform you own, but certainly those campaigns are already running on Facebook, Instagram, Twitter, etc. Why add another platform that they can't control where they have to run influence campaigns?
They should have seen a law like this being passed coming years ago. That is more than enough time to divest.
Too late now for them, I guess. They can take the financial hit for being so bad faith.
Why wouldn't American investors still want to buy it?
My guess is that American investors would want to buy it, but want the algorithm, but ByteDance is not willing to sell the algorithm out of fear that sharing it would degrade its competitive position outside the US.