The Uncertain Fate of TikTok in the U.S.
TikTok, the wildly popular short-form video platform owned by the Chinese company ByteDance, has been embroiled in controversy in the United States for over four years. The primary concern? The potential risk of U.S. user data being accessed by the Chinese government. This has led to numerous legal battles, political debates, and even attempts to force a sale of TikTok’s U.S. operations.
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Recent Developments: A Temporary Shutdown & Ongoing Discussions
Just last month, TikTok experienced a brief but dramatic outage in the U.S., leaving millions of users in limbo. While the platform was quickly restored and remains available on both the App Store and Google Play Store, its long-term future remains uncertain.
Meanwhile, multiple investors and tech giants are expressing interest in acquiring TikTok’s U.S. operations, with its valuation estimated to soar up to $60 billion, according to Angelo Zino, senior vice president at CFRA Research.
TikTok Ban: A Timeline of Key Events
Understanding TikTok’s turbulent relationship with the U.S. government requires revisiting the major developments that have unfolded over the years:
- August 2020 – Former President Donald Trump signed an executive order banning transactions with ByteDance, citing national security concerns.
- September 2020 – The Trump administration pushed for a sale of TikTok’s U.S. operations, with companies like Microsoft, Oracle, and Walmart vying for ownership. However, a U.S. judge temporarily blocked the ban, allowing TikTok to continue operating while legal disputes played out.
- 2023-2024 – Under President Joe Biden’s administration, momentum against TikTok gained traction. On April 23, 2024, the U.S. Senate passed a bill to either force TikTok’s sale or ban the app outright.
- April 2024 – President Biden signed the bill into law, prompting TikTok to sue the U.S. government, claiming the ban violated First Amendment rights.
- December 2024 – Trump, reversing his prior stance, filed a court opposition to the ban, suggesting there could be a way to keep TikTok operational in the U.S.
- January 2025 – The U.S. Supreme Court upheld the “Protecting Americans from Foreign Adversary Controlled Applications Act” (PAFACA), commonly known as the “TikTok ban.”
- January 19, 2025 – TikTok temporarily shut down in the U.S. but resumed operations within 12 hours. The company credited former President Trump’s efforts for the quick return.
- January 20, 2025 – Trump signed an executive order extending the deadline by 75 days, giving ByteDance more time to either sell a stake or negotiate terms.
- March 2025 – Trump confirmed that his administration is in discussions with four different groups interested in acquiring TikTok’s U.S. operations.
Who Wants to Buy TikTok? Potential Buyers & Investor Groups
With TikTok’s future hanging in the balance, several major investors and companies have expressed interest in acquiring the app’s U.S. operations.
1. The People’s Bid for TikTok
This consortium, spearheaded by Frank McCourt (former owner of the Los Angeles Dodgers and founder of Project Liberty), aims to acquire TikTok with a focus on data privacy and decentralization. The group is backed by investment firm Guggenheim Securities and law firm Kirkland & Ellis.
Notable Supporters:
- Alexis Ohanian (Reddit co-founder) – Recently joined as a strategic advisor.
- Kevin O’Leary (Investor & TV personality) – Previously expressed interest in acquiring TikTok for $20 billion.
- Tim Berners-Lee (Inventor of the World Wide Web) – Advocates for user control over personal data.
- David Clark (MIT Research Scientist) – A key supporter of the open-source approach.
2. American Investor Consortium
Led by Jesse Tinsley, CEO of Employer.com, this consortium has placed a $30 billion all-cash bid to acquire TikTok’s U.S. division.
Notable Participants:
- David Baszucki (Roblox Co-founder & CEO)
- Nathan McCauley (Co-founder & CEO of Anchorage Digital)
- Jimmy Donaldson (MrBeast) (YouTube influencer and entrepreneur)
3. Other Major Contenders
- Bobby Kotick (Former Activision CEO) – Interested in leveraging TikTok’s platform for gaming integration.
- Steven Mnuchin (Former U.S. Treasury Secretary) – Reportedly re-entered acquisition discussions.
- Oracle – Previously made a bid in 2020, with co-founder Larry Ellison recently reiterating interest.
- Walmart – Interested in TikTok’s potential to drive e-commerce sales.
- Microsoft – Previously bid for TikTok and has reportedly resumed discussions.
- Rumble – The YouTube alternative publicly announced its intent to acquire TikTok.
- Perplexity AI – The AI-powered search engine startup reportedly submitted a bid in early 2025.
What’s Next for TikTok in the U.S.?
While TikTok remains operational for now, its future depends on how the ongoing legal battles and acquisition negotiations unfold. Here are three possible outcomes:
- A Successful Sale – If ByteDance agrees to sell TikTok’s U.S. operations, the platform could continue operating under new ownership, potentially with increased regulations and oversight.
- A Government-Approved Partnership – ByteDance could retain partial ownership by forming a joint venture with a U.S.-based company, as proposed by Trump’s 50-50 ownership arrangement.
- A Full Ban – If negotiations fail, the U.S. government may proceed with enforcing a complete ban on TikTok, forcing millions of American users to seek alternative social media platforms.
