Washington DC: US President Donald Trump says he is “very close” to brokering a deal for TikTok, as the popular video-sharing app faces a potential US ban by April 5.
A bipartisan law passed in 2023 mandates TikTok’s Chinese parent company, ByteDance, to sell the platform due to concerns over national security.
The US government fears Chinese authorities could access TikTok’s extensive user data—an allegation that Beijing denies.
TikTok briefly went dark in January when the law took effect but returned after Trump signed an executive order delaying enforcement by 75 days. He now suggests a new deal could involve China approving the sale in exchange for relief from US tariffs on Chinese imports.
“Multiple investors” are nearing a deal, Trump said on Air Force One. He emphasized that he would “like to see TikTok remain alive” and hinted he might extend the deadline again if needed.
Potential buyers circle
A wide range of investors and companies have emerged as potential buyers:
- Amazon has reportedly submitted a last-minute bid, according to CBS, though the company has declined to comment.
- Oracle co-founder Larry Ellison is favored by Trump.
- Elon Musk was mentioned, but he denied interest.
- A group led by billionaire Frank McCourt and Canadian investor Kevin O’Leary (of Shark Tank) is in the running.
- Alexis Ohanian, co-founder of Reddit, confirmed he joined McCourt’s bid.
- MrBeast (Jimmy Donaldson), the world’s most-subscribed YouTuber, has expressed interest as part of another group.
- Tim Stokely, founder of OnlyFans, is bidding through his revived company, Zoop.
- Other major players reportedly involved include Microsoft, Blackstone, Andreessen Horowitz, and AI startup Perplexity AI.
The White House is reportedly considering a structure where ByteDance keeps ownership of TikTok’s core algorithm but leases it to a new US-based entity, enabling continued operation while addressing national security concerns.
What if no deal is reached?
If a deal isn’t finalized by April 5, TikTok could be removed again from the App Store and Google Play. While Trump delayed enforcement earlier, the law passed by Congress remains valid and was upheld by the US Supreme Court.
In February, TikTok returned to app stores after companies were informed that they would not face penalties for hosting the app. Trump has hinted that he might extend the current deadline again, offering more time to complete a sale.
Who benefits if TikTok is banned?
TikTok has 170 million US users who spent an average of 51 minutes per day on the app in 2024. If TikTok disappears from the US market, competitors like Instagram Reels, YouTube Shorts, and Amazon’s Twitch stand to gain users and advertising dollars.
According to Kelsey Chickering, a Forrester analyst, advertisers are prepared to redirect their media budgets to Meta (Instagram/Facebook) and Google if TikTok becomes unavailable.
Chinese-owned Xiaohongshu (RedNote) is also rising in popularity among US and UK users, further shifting the social media landscape.
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