Eventbrite’s stock price is up more than 23% today, after the company announced a partnership between TikTok and social media. This partnership allows the company to integrate their events calendar as well as ticketing into the app.
TikTok users will have the ability to sell tickets and promote events by sharing Eventbrite links directly in their app.
The fact that TikTok might not exist in the US within a couple of months is what makes this deal so interesting. TikTok is under scrutiny lately because of fears it’s being used to spy on Americans by the Chinese government.
In March of this year, a law passed requiring TikTok’s parent company ByteDance sell their shares to an American company. If they don’t do so, the company could be banned. If TikTok is banned, the app will not be available in the United States. This would make Eventbrite’s deal with TikTok meaningless.
The fact that the deal was completed tells us much about TikTok’s ban. This question was likely to have been raised many times in Eventbrite negotiations.
It’s not too much to say that TikTok has already solved its US issue.
Why is TikTok being banned by the US?
Americans are vocal about their concerns regarding TikTok. The Americans believe that China’s laws require companies like ByteDance (parent company of TikTok) to spy for the Chinese government. Rep. Cathy McMorris Rodgers says
ByteDance is a Chinese company that has been required by the CCP [Chinese Communist Party] to snoop on behalf of them.
TikTok tried a variety of tricks to appease American officials. Oracle has moved the data of its US-based users to servers in this country. The ads showed how the app has helped people build businesses in the US.
TikTok’s CEO Chew Shou Zi answered questions from Congress.
This does not solve the fundamental issue: ByteDance must still share US data with China’s government, as required by Chinese laws. The only way to solve this problem is for an American firm to buy out ByteDance.
What is the US price of TikTok?
TikTok could be worth over $100 billion. It is over twice as much money that Elon Musk spent on Twitter. Only the wealthiest in the world can afford such a price.
TikTok is popular amongst many people, including Share Tank’s Kevin O’Leary and Steve Mnuchin. Rumble’s CEO Chris Pavlovski as well as billionaire Frank McCourt are also interested.
US tech giants are potential purchasers. The current regulatory environment does not appear to be conducive to a purchase.
Eventbrite’s stock price is trading below analyst estimates of $8.74 despite the recent increase.
The stock will reach its full potential with the help of TikTok’s success in gaining users and increasing sales.
The post TikTok ban: What Eventbrite and TikTok reveal about their new partnership may change as the story unfolds.
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