A visitor walks past TikTok’s exhibition booths at the Gamescom video game fair in Cologne, Germany, on Thursday, August 25, 2022. (AP Photo/Martin Meissner)
The fate of TikTok in the United States remains in the air, as former President Donald Trump hinted at an impending deal. The popular video-sharing platform, owned by China-based ByteDance, faces a looming April 5 deadline, by which it must be sold or risk a nationwide ban.
On his return to Washington from Florida, Trump mentioned that discussions were ongoing with "four different groups" interested in acquiring TikTok. However, he did not reveal any specific details. "A lot of people want it, and it’s up to me," he stated aboard Air Force One.
What Happens If TikTok Isn’t Sold?
If TikTok fails to secure a sale by April 5, the ban will be reinstated as per the law passed earlier this year. However, Trump has the power to extend the deadline, a possibility he has acknowledged.
Previously, the Supreme Court upheld a law requiring ByteDance to divest TikTok or face a ban. In response, the platform briefly went offline for U.S. users but was reinstated after Trump intervened. The former president’s stance on TikTok has shifted over time—while he previously attempted to ban it over security concerns, he later acknowledged its role in engaging young voters.
Despite legal scrutiny over the executive order keeping TikTok operational, no formal challenges have been made against it in court.
Who’s Interested in Buying TikTok?
Although ByteDance has not confirmed whether it will sell TikTok, multiple buyers have expressed interest.
U.S. Vice President JD Vance is reportedly facilitating discussions with various bidders. One such party is Perplexity AI, an artificial intelligence firm that previously proposed merging its business with TikTok’s U.S. operations.
Another group led by billionaire Frank McCourt, with Reddit co-founder Alexis Ohanian as an advisor, has offered $20 billion in cash for the U.S. arm of TikTok. If their bid succeeds, they plan to implement blockchain technology to give users more control over their data.
A separate consortium, organized by Jesse Tinsley of Employer.com and including Roblox’s CEO, has put forward a more substantial offer exceeding $30 billion.
Additionally, Microsoft has shown interest, while former Treasury Secretary Steve Mnuchin and video-sharing platform Rumble have also emerged as potential buyers. Rumble, favoured by some conservative and far-right users, has expressed willingness to partner with other investors to acquire TikTok.
What’s Next for TikTok?
Trump has suggested that the U.S. government could broker a deal to secure 50% control of TikTok, but specific details remain unclear. Some bidders have proposed allowing the government to hold a stake in the platform through an investment fund.
Meanwhile, China, which previously opposed forced divestment, has softened its stance. Foreign Ministry spokeswoman Mao Ning stated that corporate acquisitions should be handled through market principles, although Chinese laws must still be respected.
A deal, if reached, will need to address crucial issues like the app’s proprietary algorithm and content-sharing policies between the U.S. and the rest of the world. With the deadline approaching, TikTok’s future remains uncertain, leaving millions of users in limbo.
