The situation surrounding TikTok’s future in the U.S. remains uncertain. The company has been under pressure to find an approved buyer for its U.S. operations following a federal law upheld by the U.S. Supreme Court. This law required TikTok to divest its American assets by January 19 to avoid a nationwide ban. Although the platform temporarily ceased access for U.S. users just before the deadline, it was back online soon after, with a message from the incoming President Donald Trump, who had made efforts to delay the ban. Trump, who has publicly shown a “warm spot” for TikTok, credited the platform with helping him secure votes from younger audiences during his 2024 campaign. Trump’s first-term efforts to ban TikTok, citing national security concerns due to its ties with China, have now evolved into a more complex negotiation over its ownership.
After taking office, Trump instructed the Justice Department to pause enforcement of the ban until April, while also signaling interest in facilitating a deal for the U.S. government to take a 50% stake in TikTok. Trump mentioned that many wealthy individuals had reached out about purchasing the app, including Oracle Chairman Larry Ellison and tech mogul Elon Musk, though neither of them has expressed a clear interest in the deal. Other notable investors, including billionaire Frank McCourt and former Treasury Secretary Steven Mnuchin, have also voiced their intentions to acquire TikTok. Additionally, AI startup Perplexity AI has submitted a proposal to merge with TikTok’s U.S. business, creating a new entity.
Meanwhile, McCourt’s investment consortium has reportedly offered $20 billion in cash for TikTok’s U.S. operations. Kevin O’Leary, a Canadian investor and member of the McCourt group, has indicated ongoing interest but believes legal obstacles may prevent the deal. Despite TikTok’s resistance to selling and China’s disapproval of the divestment, it appears that both sides may be softening their positions, suggesting potential for further negotiations. ByteDance, TikTok’s parent company, has not confirmed whether it is open to a sale but is reportedly willing to engage with U.S. and Chinese officials to find a resolution that would preserve TikTok’s presence in the U.S.
