TikTok may avoid a potential ban in the U.S. if an agreement regarding its domestic operations is reached. President Trump has indicated he favors finalizing a deal but is open to granting an additional extension if necessary.
“I have a certain fondness for TikTok,” Trump mentioned, emphasizing the app's intrigue while promising it will remain safeguarded. “It’ll be well protected. If it needs more time, I’m willing to extend the deadline. Let’s see if that’s necessary.”
The threat of a nationwide ban has persisted due to concerns that the Chinese government could access data of American users. The proposed resolution involves selling TikTok's U.S. operations to a domestic company, but no significant progress has emerged from this suggestion yet.
Why does it matter?
In January, TikTok faced a temporary blackout in the U.S. following a Supreme Court ruling supporting a nationwide ban. This action also led to the removal of several other ByteDance applications from Apple and Google’s app stores.
The ban was initiated after TikTok was ordered to sever its U.S. operations from its Chinese parent company. Several firms, including Walmart, Oracle, and Microsoft, reportedly showed interest in acquiring TikTok’s U.S. branch, but a deal could not be finalized before the deadline.
Just hours into this nationwide outage, President Trump authorized a 90-day extension and lifted the ban. Several months later, he further extended the deadline to facilitate the completion of the sale, which still hasn’t materialized.
The most recent tariffs imposed by Trump, which significantly impacted China, created obstacles for any TikTok acquisition deal. Reports from NBC noted, “A deal was almost finalized as of Wednesday, but the new tariffs on China presented unforeseen challenges.”
What’s next for TikTok?
A diverse array of parties are expressing interest in acquiring TikTok. According to Reuters, Amazon has made a last-minute proposal to buy the application’s U.S. sector. Additionally, a consortium led by Tim Stokely, the creator of OnlyFans, is competing for the acquisition.
Venture capital firm Andreessen Horowitz is also eager to secure the social media platform, partnering with Oracle on this venture. Another group known as the People’s Bid for TikTok—backed by notable figures such as Reddit co-founder Alexis Ohanian, celebrity investor Kevin O’Leary, and Tim Berners-Lee—is also vying for TikTok.
Other potential buyers include prominent YouTuber Jimmy “Mr. Beast” Donaldson and Roblox founder David Baszucki. In the tech industry, companies like Amazon, Microsoft, Oracle, Perplexity, and Walmart continue to show interest in TikTok's local operations.
