TikTok is nearing a crucial deadline to secure a non-Chinese owner, or it risks being banned in the United States. The widely popular video-sharing platform, with over 170 million American users, is facing this ultimatum due to a U.S. law passed last year, which mandates TikTok to sever ties with its Chinese parent company, ByteDance, or face a shutdown.
On Thursday, President Donald Trump stated that his administration is “very close” to brokering a deal to find a buyer for TikTok, with “multiple” investors involved, though no further details were provided. This law, driven by concerns over national security and the belief that TikTok is under the influence of the Chinese government, took effect just before Trump’s inauguration on January 19.
In a tense lead-up to the deadline, TikTok had temporarily suspended operations in the U.S. and was removed from app stores, causing frustration among millions of users. However, Trump soon announced a 75-day delay, allowing the app to return to service and be reinstated on Apple and Google app stores in February. This grace period expires at midnight on April 5, but Trump has consistently downplayed concerns, expressing confidence in securing a buyer for the U.S. arm of TikTok.
Trump suggested that the TikTok deal could even be used as leverage in ongoing tariff negotiations with China. He mentioned that a deal involving TikTok could help ease some of the tariffs imposed on Beijing.
Reports indicate that the most probable solution would involve U.S. investors in ByteDance reinvesting in a new independent global TikTok company. Companies such as Oracle and Blackstone, along with existing investors, could help reduce the proportion of Chinese ownership. Since much of TikTok’s U.S. operations are already hosted on Oracle servers, the tech giant has significant influence in the discussions.
One of the remaining uncertainties is the future of TikTok’s valuable algorithm. Reports suggest that the algorithm could be licensed from ByteDance to the new company, though this would likely conflict with the law’s premise, which aims to prevent the algorithm from being used against U.S. interests.
Amazon is reportedly making a last-minute bid for the platform, while other initiatives, including “The People’s Bid for TikTok” led by Frank McCourt’s Project Liberty, have also emerged. Artificial intelligence startup Perplexity and a joint venture with YouTube sensation MrBeast have also expressed interest.
Despite supporting a ban on TikTok during his first term, Trump has recently shifted his stance, recognizing the platform’s popularity among young voters in the 2024 elections. Notably, one of his major political donors, billionaire Jeff Yass, is a key stakeholder in ByteDance.
By AFP
