In the coming month, TikTok faces several potential outcomes: it might be acquired by new proprietors, see a reinstatement of a prior ban, or be given yet another temporary allowance to keep operating within the United States.
Uncertainty surrounding the popular video-sharing app persists since legislation mandating its China-based parent company, ByteDance, to divest ownership or encounter an operational ban took effect on January 19. Shortly after taking office, President Donald Trump prolonged TikTok’s operational period by 75 days via an executive order, delaying the enforcement of the divestment requirement until April 5.
Upon returning to Washington from his Florida residence, President Trump mentioned to reporters that an agreement concerning TikTok might soon unfold. Though he offered no specifics regarding potential buyers, he acknowledged ongoing discussions with four different interested groups.
“A lot of people want it and it’s up to me,” President Trump stated aboard Air Force One.
Meanwhile, a TikTok spokesperson declined to comment on the matter.
The pressing question is, what will transpire come April 5? Should TikTok fail to procure an officially-approved buyer by that date, the original law banning the app across the United States would indeed take effect once more. However, the timeline designated in the executive order seems amenable to adjustments, as the president mentioned potential extensions if necessary.
Trump’s directive followed a unanimous Supreme Court ruling which upheld a federal law requiring TikTok’s parent firm, ByteDance, to divest back in January. After the court’s decision, TikTok briefly ceased service for U.S. users but resumed operations following Trump’s pledge to hold back the ban.
During his initial term, President Trump attempted to prohibit TikTok on grounds of national security, but the courts halted this move. The Trump administration later tried to broker a sale which failed to reach fruition. Trump’s stance on TikTok shifted during last year’s presidential elections as he noted its role in bolstering support among younger voters.
Sustaining TikTok through the executive order has attracted criticism, yet it has not been contested legally in court.
So, who is interested in acquiring TikTok? Although ByteDance’s willingness to sell TikTok remains unclear, several potential bidders emerged in recent months.
Vice President JD Vance, appointed to oversee a possible sale, has sought information from various parties, including an artificial intelligence startup named Perplexity AI. In January, Perplexity AI proposed a merger with TikTok’s U.S. operations.
Another contender includes a consortium led by businessman Frank McCourt, who recently enlisted Reddit co-founder Alexis Ohanian as a strategic advisor. This group reportedly offered ByteDance $20 billion in cash for TikTok’s U.S. assets and plans to integrate blockchain technology to enhance user control over online data.
Jesse Tinsley, founder of payroll firm Employer.com, has orchestrated a consortium alongside the CEO of the video game platform Roblox, proposing over $30 billion for TikTok.
Back in January, Trump noted Microsoft’s interest in the app, while other prospective investors include Trump’s ex-Treasury Secretary Steve Mnuchin and the video site Rumble. Rumble expressed its readiness to partake in a purchasing consortium and potentially collaborate as a tech partner for TikTok.
What lies ahead? President Trump envisaged the U.S. government facilitating a deal that would allow for a 50% share in TikTok. However, the administration has not divulged specific details on how such an arrangement would operate or what the government’s involvement might ultimately entail.
Various interested buyers have suggested frameworks that involve the U.S. either investing in or acquiring a portion of TikTok. Last month, Trump himself alluded to the possibility of the U.S. owning part of TikTok through a new state-owned investment fund.
Contrasting their previous stance, Chinese officials seem to have adopted a more flexible approach to the potential sale. In January, Chinese Foreign Ministry spokesperson, Mao Ning, indicated that business dealings and acquisitions “should be independently decided by companies in accordance with market principles.” However, Mao emphasized adherence to China’s laws and regulations in cases involving Chinese enterprises.
Should ByteDance choose to negotiate, it will likely need to finalize substantial details with the U.S. regarding TikTok’s proprietary algorithm and the cross-border content flow between the U.S. market and global users.
