Today, I am diving into a massive development about TikTok. Nope, this isn’t just another rumor. I am talking about something that could shake up social media in the U.S. and create new investment opportunities.
TIKTOK BAN
What happened? Why all the fuss?
TikTok is literally on the brink of a ban. According to a new law passed last April, ByteDance, TikTok’s parent company, must sell the platform by January 19. If they don’t, Apple and Google will be required to remove TikTok from U.S. app stores.
Why is this happening? What’s the big deal? you wonder. Here’s the kicker: the law considers TikTok a national security threat because it’s owned by a Chinese company. Essentially, the U.S. government is worried that ByteDance might share user data with China.
Okay, but won’t this have some sort of impact?” Absolutely. ByteDance has warned that the ban could cause $1.3 billion in losses for small businesses and content creators. However, the Court of Appeals rejected TikTok’s attempt to temporarily halt the law. And from the looks of it, things are heading toward a full ban.
META & GOOGLE
So, if TikTok disappears, what happens? Are we going to be left without short videos?! Of course not!
First of all, this law only applies to the U.S. and will probably not affect us in Europe. Now, if TikTok is indeed banned, the gap in the Short Form Video market will be massive. And we already know who’s waiting to fill it, Meta with Reels and Google with YouTube Shorts.
Why those two? What do they have that others don’t? Let’s look at it practically. Facebook, Instagram, and YouTube are already platforms with huge audiences. Many TikTok content creators already have a presence on these platforms. So, if TikTok gets banned, it’s logical for creators to shift their content there.
And what else will follow the creators’ content? That’s right—their audience! Many of whom might not even have accounts on these other platforms yet.
This means more views, more engagement, and most importantly, more ad revenue for Meta and Google.
So, does this mean YouTube Shorts is the next big opportunity? It could be! If TikTok disappears from the market, YouTube Shorts could grab a huge slice of the pie. And that would bring even more profits for Google —and, of course, for us investors who trust it.
Does the same apply to Meta? Absolutely! It’s highly likely that the influx of creators and their audiences will be split between Meta and Google . One platform might gain more than the other, but the important thing is that both will come out as winners in the end!
So, if you believe that TikTok will indeed be banned in the U.S., and that Meta ($META) and Google ($GOOG) will benefit from it, the opportunity is clear!
P.S This is why we need decentralization we are not there yet for the everyday people who have zero knowledge to onboard platforms like Inleo but we will be in the next years the first thing decentralized platform has to do is to make their product user friendly and create mobile apps !!