Former Activision CEO Kotick Eyes TikTok Buyout Amid U.S. Ban Threats

Bobby Kotick, the former chief of Activision Blizzard, is reportedly exploring the possibility of acquiring TikTok, amid growing concerns and potential bans in the United States. Sources indicate that Kotick has engaged in discussions with ByteDance, the Chinese parent company of TikTok, regarding a potential purchase deal that could amount to hundreds of billions of dollars, according to The Wall Street Journal.

This development arises as US legislators introduce new legislation mandating that ByteDance divest TikTok within a six-month timeframe or face prohibition from US app stores. President Joe Biden has signaled his readiness to endorse the bill should it successfully pass through Congress.

The Wall Street Journal also reports that Kotick and OpenAI head Sam Altman discussed a possible collaboration to acquire TikTok during a dinner meeting the previous week.

Kotick's interest in TikTok emerges following a tumultuous conclusion to his three-decade leadership tenure at Activision Blizzard, which was acquired by Microsoft the previous year. Activision Blizzard faced allegations of fostering a workplace culture that tolerated sexual harassment and discrimination during Kotick's leadership. Furthermore, The Wall Street Journal alleged that Kotick was aware of instances of misconduct but did not fully disclose them to the board. While Kotick himself faced accusations of harassment, Activision Blizzard has refuted these claims as "misleading."

Lawmakers have voiced concerns pertaining to data privacy and TikTok's connections to China. US President Biden, whose administration has already prohibited the app on state-issued devices, has articulated his support for a broader ban within the US. Conversely, former President Donald Trump, who previously advocated for a TikTok ban, has since reversed his stance, asserting that such a ban would inadvertently benefit TikTok's competitors, such as Facebook and YouTube.

As the proposed legislation targeting TikTok gains traction, the app has mobilized its American user base to advocate on its behalf, dispatching messages urging users to contact their elected representatives. The bill, having already cleared a committee vote the previous week, is anticipated to pass when the House convenes for a vote on Wednesday. Upon successful passage in the House, the bill will proceed to the Senate for consideration, and ultimately, if approved, will be presented to the President of the United States for enactment.