In recent months, speculation has surrounded TikTok’s future in the United States as it faces the possibility of new ownership. The popular short-form video app has captured the attention of over 170 million American users and has become a cornerstone of digital engagement, fostering news, entertainment, and even economic opportunities. However, looming regulatory challenges have sparked debates about its ownership, heightening tensions between the app’s parent company, ByteDance, and the U.S. government.
Former President Donald Trump recently indicated that a buyer for TikTok is on the horizon. He highlighted on “Fox News’ Sunday Morning Futures” that he expects to announce the identity of this buyer in two weeks. Trump hinted at the necessity of Chinese government approval for the sale, referring to President Xi Jinping’s potential cooperation. He described the buyer as a “group of very wealthy people,” suggesting that substantial financial backing could be involved in the acquisition process.
TikTok’s operational timeline is critical, as ByteDance faces a deadline set for September 17 to divest its U.S. operations, or risk a government-imposed ban. Former President Trump had previously paused the enforcement of a sale-or-ban directive instituted by President Joe Biden, originally scheduled to be effective in January. This delay was intended to facilitate negotiations that could lead to TikTok’s purchase by an American entity, thereby securing the app’s future and safeguarding user privacy and security.
As discussions continue at high levels of governance, it remains unresolved whether the Chinese authorities would permit a sale of TikTok, a point that adds complexity to the ongoing negotiations. A previous attempt to transfer the majority control of TikTok’s U.S. operations to American ownership in April stalled after Trump instituted new tariffs on China, leading the White House to enforce yet another extension to keep the service operational within the United States.
According to White House press secretary Karoline Leavitt, negotiations with China concerning the sale are progressing and are classified as a top priority for the administration. She emphasized that aligning the deal with national security laws is imperative. Reports indicate that ByteDance must retain a minority ownership of no more than 20%, with strict regulations mandating that TikTok’s operations in the U.S. function independently and refrain from collaborating with its parent company on data handling and algorithm choices.
The potential buyers for TikTok include a consortium of investors who were once on the verge of securing a deal before the tariff imposition led to derailed negotiations. This group, comprised of venture capitalists and tech companies, had proposed a model where ByteDance would retain a minority stake while transferring operational control to American investors.
Oracle, a company already connected to TikTok as its U.S. technology partner, emerged as a strong candidate to lead the acquisition of the app’s American operations along with other significant investors, such as General Atlantic and Susquehanna International Group. Their involvement showcases the varied interests in securing a stake in the lucrative gig economy that TikTok has fostered.
Other contenders are also vying for control, including a notable group spearheaded by Frank McCourt, the former owner of the Los Angeles Dodgers, and “Shark Tank” personality Kevin O’Leary. Their coalition, dubbed “The People’s Bid for TikTok,” aims to enhance user control over data and technology. They assert that without a divestment, American users face mounting vulnerabilities in terms of privacy and data security.
Notable social media influencer Jimmy Donaldson, known as MrBeast, and Jesse Tinsley, founder of Employer.com, are also pursuing acquisition opportunities. Meanwhile, Perplexity, an artificial intelligence firm, has expressed a keen interest in revamping TikTok’s algorithm while maintaining competitive practices.
With various proposals and interests converging, the future of TikTok hinges not just on potential buyers but also on regulatory frameworks and geopolitical negotiations. The ongoing developments will undoubtedly captivate attention amid the intersection of technology, privacy rights, and international relations in this evolving digital landscape. As the countdown to the potential ownership change continues, further clarity on buyer identity and the prospects of federal approval remains keenly anticipated.
