TikTok, the short-video app with more than 170 million users in the United States, is once again under serious pressure. A U.S. law demands that the app separate from its Chinese parent company, ByteDance, or face a complete ban across the country.
The law, passed with strong support in Congress, was motivated by national security concerns. Many U.S. officials believe the Chinese government could access TikTok user data, raising alarms about privacy and influence over American users.
Temporary Shutdown and 75-Day Grace Period
Just before the law took effect on January 19, TikTok was briefly removed from app stores and shut down its U.S. services. However, shortly after his inauguration, President Donald Trump signed an executive order giving TikTok a 75-day extension, which restored the app for existing users in February.
That extension is now set to expire at midnight on April 5, putting TikTok back in a difficult position. Without a solution, it could be banned again.
Trump Says a Deal Is Near
On Thursday, President Trump said a solution was “very close.” He mentioned that “multiple” investors are involved, though he did not give full details. Trump also suggested TikTok could be included in a bigger trade deal with China, especially as the U.S. imposes heavy tariffs on Chinese goods.
“We have a situation with TikTok where China will probably say we’ll approve a deal, but will you do something on the tariffs?” Trump said. “The tariffs give us great power to negotiate.”
Possible Buyers and Deal Structure
According to reports, the most likely plan is to create a new independent global company. Existing U.S. investors in ByteDance may roll over their stakes, and new investors like Oracle and Blackstone would join in to reduce ByteDance’s ownership.
Oracle, which already handles much of TikTok’s U.S. data through its servers, has been a key player. Its chairman, Larry Ellison, is also known to be a close Trump ally.
Meanwhile, other companies have shown interest:
- Amazon reportedly made a last-minute bid.
- A group of creators led by MrBeast teamed up for a joint bid.
- AI company Perplexity also expressed interest.
- Real estate billionaire Frank McCourt’s Project Liberty offered a unique public-driven bid.
- Even OnlyFans joined the list of potential buyers.
The Big Question: What Happens to the Algorithm?
One of the biggest concerns is TikTok’s algorithm, the secret behind its powerful user experience. Experts warn that if TikTok is sold without its algorithm, it may lose its magic.
“TikTok without its algorithm is like Harry Potter without his wand,” said Kelsey Chickering, an analyst at Forrester. “If the experience degrades, users, creators, and advertisers will leave.”
The New York Times reported that a possible solution could be licensing the algorithm from ByteDance. However, this idea may not satisfy U.S. lawmakers, as they fear the algorithm itself could be used to harm U.S. interests.
Politics and Business Collide
Interestingly, Trump has changed his stance on TikTok. While he supported a ban during his first term, he now sees the app as a tool to connect with younger voters, many of whom supported him in recent elections.
Adding another layer to the issue, billionaire Jeff Yass, a key political donor to Trump, is one of the largest stakeholders in ByteDance. His involvement could also play a role in how this deal unfolds.
What’s Next for TikTok in the U.S.?
As the new April deadline approaches, TikTok’s future in the United States remains uncertain. The next steps depend on:
- Whether ByteDance agrees to sell.
- What the new deal looks like.
- Whether the algorithm is part of the deal.
- How China and the U.S. navigate ongoing trade tensions.
Until then, millions of users, creators, and businesses that rely on TikTok are left watching and waiting.
The Information is Collected from Reuters and MSN.
