Bobby Kotick, the former chief executive officer of video game giant Activision, has recently shown keen interest in acquiring the popular video content platform, TikTok. According to sources cited by the Wall Street Journal (WSJ), Kotick conveyed his interest to Zhang Yiming, the co-founder of ByteDance, TikTok’s parent company.
The potential deal is rumored to involve a staggering sum in the hundreds of billions of dollars, as reported by various sources. During a dinner at an Allen & Co. conference earlier this week, Kotick reportedly discussed the possibility of forming a partnership to acquire TikTok. Interestingly, this proposal was presented to a gathering that included OpenAI CEO Sam Altman.
Experts speculate that such an acquisition could be beneficial for OpenAI, as TikTok’s extensive user-generated content could serve as valuable data for training artificial intelligence models, provided sufficient capital is raised for the purchase.
This development comes amidst increasing regulatory scrutiny and challenges faced by ByteDance. The U.S. House of Representatives recently introduced legislation requiring ByteDance to divest itself of TikTok or risk a ban from app stores and web-hosting services in the United States. The legislation aims to address concerns about the potential threat TikTok poses to U.S. national security, with allegations of Chinese government spying and unauthorized access to American citizens’ data.
The initial push for ByteDance to sell TikTok was instigated by former President Donald Trump. While TikTok has been banned from government-owned devices, broader efforts faced legal obstacles. The Biden administration, recognizing the national security concerns, is seeking clear legal authority through the new TikTok bill.
Despite ongoing negotiations with the Committee on Foreign Investment in the U.S., TikTok has not reached an agreement on its continued presence in the country. In 2022, discussions revolved around storing American user data on Oracle Corp. servers in the U.S. and restricting access to others.
Under the proposed bill, ByteDance has a five-month window to comply. TikTok argues that such a move would practically amount to a ban on its U.S. platform, affecting over 170 million American users.
The “Protecting Americans from Foreign Adversary Controlled Applications Act” unanimously passed the House Energy and Commerce Committee on March 7. It is now headed to the Senate for a floor vote, with President Joe Biden expressing his readiness to sign the bill immediately if it reaches his desk.
In contrast, some U.S. senators voice concerns about the legislative attempts to ban the app altogether.
Bobby Kotick’s interest in TikTok acquisition comes on the heels of his notable tenure at Activision Blizzard. Serving as CEO for over 30 years, Kotick orchestrated the merger with Vivendi Games, forming Activision Blizzard in 2008. His leadership came to an end in 2023 amid a sexual harassment and gender discrimination lawsuit, resulting in a $50 million settlement.
Notably, Microsoft’s $68.7 billion bid for Activision Blizzard faced rigorous scrutiny and was eventually approved by regulators in 2023, adding another layer of complexity to Kotick’s storied career.