The future of TikTok in the US hangs in the balance with users uncertain this week as the social media app may be a few nights away from total ban. This comes as the short-form video app is yet to secure a new owner.
TikTok’s potential sale represents a complex technological and geopolitical challenge, as Congress originally passed the legislation citing national security concerns about potential Chinese government surveillance, a claim ByteDance has consistently denied.
A lot of people want TikTok
ByteDance is the parent company of TikTok and it is on the edge as it seeks to sell the US operations of its social media app by April 5.
The app was once banned by outgoing President Joe Biden in January, but hours later, President Donald Trump extended the deadline and said a ban would be imposed in the US if it failed to secure a buyer by the set deadline.
With regular users of the app retaining optimism that a deal will be struck before Saturday, the implications of closure are not to be underestimated. A total of 170 million Americans use TikTok to find entertainment, community, news and even make a living.
However, President Trump has vowed to keep the app open by finding buyers for the embattled social media platform. According to reports, on Sunday aboard Air Force One, he told reporters that “a lot of people want it.”
“We have a lot of potential buyers, there’s tremendous interest in TikTok. The decision is going to be my decision.”
Trump.
In January, he actually questioned the reasons behind its closure saying, “Is it that important for China to be spying on young people? On young kids watching crazy videos?”
His administration is in touch with four groups regarding the sale of the Chinese owned app, with all options regarded in a positive light. Last week, the president floated the idea that China will play a part in working out a deal, such as giving its approval, and said that “maybe I will give them a little reduction in tariffs or something to get it done.”
Among the possible bidders is a consortium of investors led by Susquehanna International Group and General Atlantic that have emerged as frontrunners, per an earlier report by Reuters. The same report said private equity firm Blackstone is considering making a small minority investment in TikTok’s US business.
ByteDance prefers to shut down TikTok
Among other potential bidders for TikTok is artificial intelligence (AI) search engine company Perplexity, which recently made its case for why it should become the site’s new owner, after weeks of reports that the firm was interested in merging with TikTok.
On its blog, the company wrote: “Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world class technical capabilities with little tech independence.”
The former Los Angeles Dodgers owner, Frank McCourt is another potential buyer and has emerged as one of the interested parties. Oracle and Microsoft have emerged as other prospective buyers, although the specific details of their current interest remain unclear.
Vice President JD Vance who was tasked to oversee the potential deal last week said, “almost certainly” there would be an agreement that would see the app not switching off the lights on its American users.
“There will almost certainly be a high level agreement that I think satisfies our national security concerns, allows there to be a distinct American TikTok enterprise,” the vice president said in an interview with NBC News.
President Trump has also floated another option of the US sovereign wealth fund acquiring part or all of the app, although no further details were provided.
However, TikTok owner, ByteDance maintains that it would prefer to shut down the app in the US rather than sell, adding another layer of complexity to the ongoing negotiations. The company has been in active discussions with the Trump administration, exploring potential alternatives to a full divestiture.
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