What Eventbrite’s new partnership reveals about TikTok’s ban in the US

Eventbrite stock is up over 23% during trading today after announcing a partnership with social media app TikTok. The partnership will allow the company to fully integrate its events calendar and ticketing within the app.

Users of TikTok will be able to promote these events and sell tickets by directly sharing Eventbrite’s links in the app.

What makes the deal interesting is the fact that TikTok may not even exist in the US in a few months. TikTok has been under fire lately due to fears that it is used by the Chinese government to spy on Americans.

A law was passed in March this year demanding TikTok parent company ByteDance to sell its shares to a US company or risk getting banned. A TikTok ban would mean the app won’t be accessible in the United States, rendering Eventbrite’s deal meaningless.

However, the fact that this deal went through tells us a lot about TikTok’s ban. The question would have come up many times during Eventbrite’s negotiations.

And it won’t be too far fetched to assume that TikTok may have already found a solution to its US problem.

Why does the US want TikTok banned?

The Americans have been quite vocal in expressing their fears about TikTok. They think China’s laws demand company like ByteDance, TikTok’s parent, to spy on behalf of the Chinese government. Rep. Cathy McMorris Rodgers, says,

Today, the CCP’s [Chinese Communist Party’s] laws require Chinese companies like ByteDance to spy on their behalf.

TikTok has tried various tricks to appease the American government. It has already moved its US users’ data to Oracle servers inside the country. It ran ads in the country showing how people have used the app to build successful businesses.

TikTok CEO Chew Shou Zi even sat before Congress to answer their questions.

All of this does not resolve the basic point though: ByteDance is still required by Chinese law to share the US data with the Chinese government. It seems the only solution is a buyout by an American company.

Who can buy TikTok in the US?

TikTok might be valued at over $100 billion. This is more than twice the amount that Elon Musk paid for Twitter. Such a high price tag means only the richest in the world will be able to afford the buyout.

Individuals interested in TikTok include Share Tank star Kevin O’Leary, investment banked Steve Mnuchin, Rumble CEO Chris Pavlovski, and billionaire Frank McCourt among others.

Tech giants in the US are also potential buyers. However, the current regulatory climate does not seem conducive to such an acquisition.

Despite the recent surge in share price, Eventbrite stock is still trading well below the average analyst estimate of $8.74.

Its breakthrough with TikTok will certainly help it penetrate its userbase and increase sales, helping the stock reach it full potential.

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