Activision's Ex-CEO Kotick Mulls TikTok Takeover Amidst US Ban Threat

Former Activision CEO Eyes Potential Acquisition of TikTok

Bobby Kotick, the former chief executive of Activision Blizzard, is reportedly exploring the possibility of acquiring TikTok, amidst growing concerns that the popular video-sharing app could face a ban in the United States. According to The Wall Street Journal, Kotick has engaged in discussions with ByteDance, the Chinese parent company of TikTok, regarding a potential buyout that could amount to hundreds of billions of dollars.

This development coincides with the introduction of a new bill by US lawmakers that would mandate ByteDance to divest TikTok within a six-month timeframe, or face the prospect of being removed from US app stores. President Joe Biden has indicated that he would sign the bill into law if it successfully passes through Congress.

The Wall Street Journal further reports that Kotick and OpenAI CEO, Sam Altman, discussed a possible collaboration to acquire TikTok during a dinner meeting held last week.

Kotick's interest in TikTok emerges after his departure from Activision Blizzard, following a 30-year tenure. Microsoft acquired Activision Blizzard last year. During his leadership, the company faced a lawsuit alleging the existence of sexual harassment and discrimination. The Wall Street Journal also reported that Kotick was aware of misconduct but did not fully disclose it to the board. While Kotick has faced accusations of harassment, Activision Blizzard has refuted these claims, labeling the reports as "misleading".

Lawmakers have raised concerns regarding data privacy and TikTok's connections to China. President Biden's administration has already banned the app on state-issued devices and expressed support for a broader ban within the US. In contrast, former President Donald Trump, who previously sought to ban TikTok, has reversed his stance, arguing that such a ban would benefit TikTok's competitors, such as Facebook and YouTube.

As the bill targeting TikTok gains momentum, the app has urged its American users to advocate on its behalf, prompting them to contact their elected representatives. The bill, which recently cleared a committee hurdle, is anticipated to pass in the House vote scheduled for Wednesday. Upon successful passage in the House, the bill will proceed to the Senate for consideration, and subsequently, to the President for final approval and enactment.