U.S. President Donald Trump announced on Sunday that his administration is in talks with four groups interested in purchasing TikTok, the Chinese-owned social media platform that has been at the center of a national security controversy.
Speaking to reporters aboard Air Force One, Trump hinted that a deal could be close, describing all four potential buyers as “good” options.
“We’re dealing with four different groups, and a lot of people want it … all four are good,” Trump said. “It could [happen soon].”
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TikTok’s Turbulent Journey
The announcement marks a critical moment in TikTok’s fraught journey in the U.S. The app, which is owned by Beijing-based ByteDance, has faced mounting pressure from the U.S. government over concerns that it could share data with the Chinese government, posing a national security threat.
TikTok’s troubles began in earnest during the Trump administration in 2020 when an executive order sought to ban the app unless ByteDance sold its U.S. operations to an American company. Microsoft, Oracle, and Walmart were among the companies vying for a deal back then, but a sale never materialized as the administration changed and legal battles ensued.
Afterward, TikTok attempted to navigate the storm by bolstering transparency and data security. The company proposed “Project Texas,” which involved storing U.S. user data on American soil with the help of Oracle. Despite these efforts, concerns persisted, and pressure mounted once again with the passage of a new law, mandating ByteDance to either divest from TikTok or face a ban in the U.S. on January 19, 2025.
Trump, who took office on January 20, signed an executive order providing a 75-day delay to the enforcement of the ban. However, with the clock ticking, the embattled app has struggled to find a viable path forward.
A Desperate Search for a Buyer
ByteDance has reportedly exhausted all its options to keep TikTok operating in the U.S. The company explored numerous strategies, from legal challenges to negotiating compliance measures with U.S. regulators. But with all other avenues seemingly closed, a sale appears to be the last lifeline for the platform, which boasts over 150 million U.S. users.
Several groups have expressed interest in acquiring TikTok, including former Los Angeles Dodgers owner Frank McCourt. Analysts estimate that TikTok could be valued at as much as $50 billion, a testament to its cultural influence and commercial potential.
McCourt, known for his ventures in technology and media, could bring a fresh vision to TikTok. However, Trump did not reveal whether McCourt is among the four groups currently in talks.
Trump’s Role as a Kingmaker
Trump’s involvement in the negotiations is considered critical given his complicated relationship with TikTok. His administration’s stance will not only influence the terms of any sale but also set a precedent for how the U.S. deals with foreign-owned technology companies. The president has maintained a hardline stance on Chinese technology, a position that aligns with the broader bipartisan consensus in Washington.
Trump’s executive order delaying the ban has provided a narrow window for negotiations, but it also highlights the urgency of reaching a deal. Should ByteDance fail to secure a buyer, TikTok could be banned in the U.S., dealing a significant blow to its global operations. The app had previously shut down as the January 19 deadline neared but reinstated its service following Trump’s intervention.
On The Stakes of National Security
The sale of TikTok is predominantly influenced by national security concerns. The U.S. government fears that the Chinese Communist Party could compel ByteDance to hand over user data or manipulate content on the platform to influence public opinion.
TikTok has repeatedly denied these allegations, stating that its data centers for U.S. users are located outside China and are not subject to Chinese laws. However, skepticism remains, and the app’s Chinese ownership continues to be a sticking point for U.S. authorities.
However, a sale could reshape the social media industry. If an American company acquires TikTok, it could stabilize the platform’s future in the U.S. and offer new opportunities for growth.
Time Running Out for TikTok
The 75-day delay granted by Trump’s executive order is fast approaching. ByteDance and the interested buyers must navigate complex regulatory approvals and finalize negotiations before the deadline.
A sale would likely require clearance from the Committee on Foreign Investment in the United States (CFIUS), which has the authority to block deals that pose national security risks. Given the high stakes, the negotiations are expected to be closely scrutinized by both U.S. and Chinese authorities.
While TikTok’s fate hangs in the balance, a successful sale could allow the app to continue operating in the U.S. without disruption. The platform, known for its short-form videos and viral trends, has become a cultural phenomenon, particularly among younger audiences.