25

Former President Donald Trump has confirmed that a deal to sell TikTok is nearing completion, as pressure mounts on its Chinese parent company, ByteDance. If ByteDance does not finalize the sale of TikTok by April 5, the app faces a potential ban across the United States. This follows a bipartisan law passed last year, demanding that ByteDance divest from TikTok to continue operating in the U.S. The law briefly removed TikTok from U.S. app stores in January, but Trump intervened, pausing enforcement until the new deadline.

The Stakes: National Security Concerns and the Race to Sell

U.S. lawmakers and officials argue that TikTok’s massive data collection poses a national security threat, claiming that the Chinese government could misuse user data. Beijing has strongly denied these accusations, asserting that no such access is granted to Chinese officials. As the deadline approaches, numerous investors have entered the fray to acquire the app. Trump revealed during a flight on Air Force One that several investors are close to a final deal.

In a possible move to accelerate the sale, Trump has floated the idea of reducing tariffs on Chinese imports in exchange for China’s approval of the sale. Reports have surfaced that Amazon has submitted a last-minute bid to purchase the app, though the company has not publicly commented.

Major Investors Enter the Bidding Race

Several high-profile names have emerged as potential buyers. Trump has indicated that Larry Ellison, co-founder of Oracle, is a favored candidate. However, Elon Musk, despite speculation, has denied any interest in acquiring TikTok. Other potential buyers include billionaire Frank McCourt, Canadian investor Kevin O’Leary, and Reddit co-founder Alexis Ohanian, who supports McCourt’s bid. YouTube star MrBeast (Jimmy Donaldson) has confirmed his involvement in an investor group, alongside Tim Stokely, founder of OnlyFans, who made a separate offer through his newly relaunched company, Zoop.

Other firms reportedly involved in the bidding include Microsoft, Blackstone, Andreessen Horowitz, and AI startup Perplexity. Additionally, the Biden administration has considered a proposal allowing ByteDance to retain the algorithm behind TikTok but lease it to a new U.S. operator.

The Countdown to April 5: Will TikTok Be Banned?

The deadline for a TikTok sale is fast approaching. If no deal is reached by April 5, the app could once again be removed from U.S. app stores. Trump’s executive order in January temporarily delayed the ban for 75 days. However, this order did not overturn the law passed by Congress, which was upheld by the courts. The former president may allow the law to remain in place while instructing the Justice Department to refrain from enforcing it. This could potentially allow Apple and Google to continue offering TikTok without facing legal consequences. The app returned to both platforms in February, operating under this temporary understanding.

Trump has also suggested that he may extend the deadline if necessary. “I would probably extend the deadline if it requires more time,” he said, hinting that further negotiations could be in the works.

What’s at Stake for U.S. Users and Competitors?

TikTok currently boasts 170 million U.S. users, who spend an average of 51 minutes per day on the platform. The potential removal of TikTok from the U.S. market would have a significant impact on both users and competitors. Experts predict that platforms such as Instagram Reels and YouTube Shorts could see an uptick in users if TikTok is banned. Kelsey Chickering, an analyst at Forrester, notes that top marketing executives are already planning to shift their advertising budgets from TikTok to Meta (Instagram) and Google (YouTube).

Twitch, Amazon’s streaming platform, may also stand to gain from the shifting user base. Although Twitch originally targeted gamers, it has since expanded into a variety of content genres, including music, cooking, and lifestyle. Another Chinese-owned platform, Xiaohongshu, known as RedNote in the U.S., has gained popularity in both the American and British markets, positioning itself as a potential TikTok alternative.

The Future of TikTok: Can the App Survive the Deadline?

As the countdown to April 5 continues, the future of TikTok in the U.S. hangs in the balance. If no deal is finalized, users, investors, and competitors alike will have to adjust to the new reality.

For now, the app remains available on both Apple’s and Google’s app stores, but that could change as the deadline approaches. If the U.S. government does not intervene, TikTok may be forced to leave the American market. However, with multiple high-profile investors eager to strike a deal, the fate of the popular app may not be sealed just yet.