TikTok faced a crucial deadline on Friday, with the popular video-sharing app under threat of being banned in the United States unless it finds a non-Chinese owner, according to United Kingdom’s news outlet, The Guardian.
With over 170 million American users, TikTok’s future in the U.S. hinged on compliance with a law passed last year, mandating that the app separate from its Chinese parent company, ByteDance, or cease operations.
U.S. President Donald Trump said on Thursday that his administration was “very close” to finalizing a deal to secure a buyer for TikTok. He mentioned that “multiple” investors were involved but did not provide specific details. The law, motivated by national security concerns and suspicions about TikTok’s ties to the Chinese government, took effect on January 19, one day before Trump’s inauguration.
In the lead-up to the initial deadline, TikTok temporarily halted its U.S. operations and vanished from app stores, much to the dismay of millions of users. However, Trump soon announced a 75-day extension, allowing TikTok to resume services, including returning to Apple and Google app stores by February.
This delay, however, was set to expire at midnight (0400 GMT) on April 5. Despite this, Trump expressed optimism that TikTok would not be shut down, stating he was confident about securing a buyer for the app’s U.S. business.
The president also hinted that TikTok could become part of a larger negotiation with China to reduce tariffs imposed during his administration. Asked if he would consider trade deals involving tariffs, Trump remarked, “As long as they are giving us something that is good. For instance with TikTok.”
He added, “We have a situation with TikTok where China will probably say we’ll approve a deal, but will you do something on the tariffs. The tariffs give us great power to negotiate.”
Reports suggest the most feasible resolution would involve existing U.S. investors in ByteDance rolling over their stakes into a new independent global TikTok entity. Additional U.S. investors, including Oracle and private equity firm Blackstone, would join the venture to decrease ByteDance’s ownership.
Much of TikTok’s U.S. data is already stored on Oracle servers, and Larry Ellison, Oracle’s chairman, is known to be a Trump ally.
A critical issue remains the fate of TikTok’s algorithm, which is seen as the core of the platform’s success. Forrester Principal Analyst Kelsey Chickering commented, “TikTok without its algorithm is like Harry Potter without his wand — it’s simply not as powerful.” She warned that a weakened user experience could drive creators and advertisers to other platforms.
Some reports speculate that the new company might license the algorithm from ByteDance, but this approach conflicts with the spirit of the law, which aims to prevent potential manipulation by Chinese interests.
Meanwhile, Amazon has reportedly made a last-minute bid to acquire TikTok. Other proposals include “The People’s Bid for TikTok,” initiated by Frank McCourt’s Project Liberty, and expressions of interest from AI startup Perplexity. YouTube star MrBeast and adult content platform OnlyFans have also shown interest in purchasing the app.
Despite supporting a ban during his first term, Trump has recently shifted to defending TikTok, recognizing its influence among younger voters who supported him in the November election. Additionally, billionaire Jeff Yass, a major Trump donor, is a significant stakeholder in ByteDance, TikTok’s parent company.
With the deadline looming, TikTok’s fate remains uncertain, and the outcome could reshape the platform’s presence in the United States.
