Key Takeaways from Tiktok’s:
- TikTok faces a U.S. ban due to data privacy concerns, but investors are competing to buy it.
- Trump’s surprising support delayed the ban, giving TikTok time to negotiate a sale.
- Key bidders include The People’s Bid, American Investor Consortium, Oracle, and Microsoft.
- TikTok’s future hinges on a potential 50-50 ownership deal between ByteDance and a U.S. company.
TikTok’s Uncertain Future in the U.S.
TikTok, the popular social media app owned by Chinese company ByteDance, has been under scrutiny in the U.S. for years. Concerns about user data being accessed by the Chinese government have led to legal battles, bans, and negotiations. Despite a temporary outage last month, TikTok remains operational, but its future is still uncertain. Several investors are now competing to buy the app, with its U.S. business valued at over $60 billion.
Related:
- TikTok’s Bold Move: US Android Users Can Still Download the App Despite Ban – February 10, 2025
- The Race to Build the Next TikTok: Meet the Apps Competing to Be the ‘TikTok for Bluesky – February 4, 2025
- MrBeast Joins $1 Trillion TikTok Buyout Bid: Will He Save the App? – January 30, 2025
- Oracle and Microsoft in Talks to Take Over TikTok: What It Means for the App’s Future – January 27, 2025
- Perplexity AI Joins Race to Save TikTok: Bold Merger Proposal Unveiled – January 20, 2025
- Mark Cuban Eyes TikTok Alternative Built on Bluesky’s AT Protocol – January 17, 2025
The Timeline of TikTok’s U.S. Drama
The controversy began in August 2020 when former President Donald Trump signed an executive order to ban transactions with ByteDance. Trump’s administration pushed for TikTok’s U.S. operations to be sold to an American company. Microsoft, Oracle, and Walmart were among the leading contenders. However, a U.S. judge blocked the ban, allowing TikTok to continue operating.
In 2024, the U.S. House of Representatives passed a bill targeting TikTok with a 360-58 vote. The Senate followed suit, and President Joe Biden signed the bill into law, requiring TikTok to be sold or banned. TikTok sued the U.S. government, arguing the ban violated First Amendment rights. The company denied any security threats, stating its U.S. data complies with local laws.
Trump’s Surprising Change of Heart
In December 2024, Trump opposed the TikTok ban in a court filing, suggesting he could find a way to keep the app in the U.S. This marked a significant shift from his earlier stance. The U.S. Supreme Court upheld the ban in January 2025, leading TikTok to announce it would shut down on January 19. However, the app went offline for less than 12 hours before returning, citing Trump’s efforts.
Trump later signed an executive order delaying the ban for 75 days, giving TikTok time to negotiate a sale or partnership. His goal is a 50-50 ownership split between ByteDance and a U.S. company.
Who Wants to Buy TikTok?
Several investor groups and companies are rumored to be interested in acquiring TikTok’s U.S. operations. Here are the key players:
- The People’s Bid for TikTok: Led by Frank McCourt, former owner of the Los Angeles Dodgers, this consortium includes Kevin O’Leary, Tim Berners-Lee, and David Clark. Their mission is to prioritize user privacy and data control through an open-source approach.
- American Investor Consortium: Jesse Tinsley, CEO of Employer.com, is leading a group offering $30 billion in cash. Members include Roblox CEO David Baszucki, Anchorage Digital CEO Nathan McCauley, and YouTube creator MrBeast.
- Other Interested Parties:
- Bobby Kotick, former CEO of Activision, sees potential in integrating gaming with social media.
- Steven Mnuchin, former U.S. Treasury Secretary, has reentered discussions.
- Oracle and Walmart, both previous bidders, are still in the mix.
- Microsoft has reentered the bidding, and Rumble wants to serve as TikTok’s cloud partner.
- Perplexity AI, an AI search engine startup, also submitted a bid.
Stay tuned as TikTok’s fate unfolds – the stakes are high, and the drama is far from over!
Stay Updated: Tech News
