Former Activision Chief Kotick Explores TikTok Buyout Amid US Ban Threat

Bobby Kotick, the former CEO of Activision Blizzard, is reportedly exploring the possibility of acquiring TikTok as the popular video-sharing app faces a potential ban in the United States.

Bobby Kotick, former Activision CEO.

According to The Wall Street Journal, Kotick has engaged in discussions with ByteDance, the Chinese parent company of TikTok, regarding a potential purchase. The acquisition could involve a substantial investment, potentially reaching hundreds of billions of dollars.

This development coincides with the introduction of new legislation in the U.S. that would require ByteDance to divest its ownership of TikTok within six months or face a ban from U.S. app stores. President Joe Biden has indicated his willingness to sign the bill into law if it passes Congress.

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

Kotick's interest in TikTok emerges following his departure from Activision Blizzard after a 30-year tenure, which concluded with Microsoft's acquisition of the company last year. During his leadership, Activision Blizzard faced allegations of fostering a culture of sexual harassment and discrimination, leading to a lawsuit. The Wall Street Journal also alleged that Kotick was aware of instances of misconduct but failed to fully inform the board. While Kotick has faced accusations of harassment, Activision Blizzard has refuted these claims, describing the reports as "misleading."

Lawmakers have expressed concerns regarding data privacy and TikTok's connections to China. President Biden's administration has already prohibited the app on state-owned devices and voiced support for a nationwide ban. However, 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 proposed legislation against TikTok gains momentum, the app has urged its American users to advocate on its behalf, prompting them to contact their representatives. The bill, having already cleared a committee vote last week, is anticipated to pass in the House vote scheduled for Wednesday. If successful, it will proceed to the Senate for consideration and, if approved, will be signed into law by the President of the United States.