Sioux Falls, South Dakota. Photo Credit: Maxpower2727
TikTok could operate out of South Dakota if its U.S. sale closes – at least according to numerous reports coming from the Mount Rushmore State.
Local outlets covered the interesting possibility on the heels of a related Facebook post from South Dakota Governor Larry Rhoden. While it probably goes without saying, the outcome hinges on (among other things – more on this in a moment) TikTok actually selling its stateside operations.
At present, a divestment deal (though reportedly near wrapping for a time) appears far from guaranteed, we broke down in detail.
But should TikTok U.S. find a particular buyer and finalize an agreement, its domestic headquarters may end up in South Dakota, population 925,000.
“We are working with a potential buyer for TikTok to explore bringing the company to South Dakota,” Governor Rhoden indicated in the aforementioned Facebook post.
“The Noem-Rhoden Administration led the movement to ban TikTok for state government, so we are the perfect spot for a new and improved TikTok,” he continued.
The same message linked to a formal release from Rasner Media, which belongs to the namesake Wyoming entrepreneur Reid Rasner and made a $47.45 billion offer for TikTok’s U.S. operations in late February.
In the corresponding release, Rasner touched on a “vision to base TikTok in Wyoming—powered by the state’s low-cost, clean energy like LNG, coal, and nuclear.”
Evidently, things subsequently changed. On this front, Rasner (the businessman, that is) in the above-highlighted release elaborated that “South Dakota has stepped up as a strategic partner.”
Running with the point, the entrepreneur’s bid has received endorsements from not just the governor, but the South Dakota Retailers Association and the South Dakota State Chamber of Commerce, Rasner Media noted.
To state the obvious, Rasner Media isn’t alone in vying for TikTok U.S., which multiple investor groups are looking to purchase. Thus, the app’s setting up shop in South Dakota depends both on a deal going through and on Rasner Media’s having the winning bid.
Nevertheless, South Dakota’s support for the Rasner Media bid is significant on several levels. Keeping the focus on the big picture in the interest of brevity, should TikTok sell in the U.S., the transaction will necessitate a largescale reorganization, to put it mildly.
That includes not just establishing the revamped app’s headquarters (and replacing at least some departed execs), but opening different offices, striking fresh third-party deals, and a whole lot else. In other words, South Dakota could fit into the TikTok U.S. picture in some form regardless of the (possible) buyer.
Recommended Comments
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.