Trump says TikTok deal ‘coming soon’: a look at potential buyers and next steps

The fate of TikTok, the wildly popular video-sharing app, hangs in the balance.

With a looming deadline of April 5th, the app could soon find itself under new ownership, facing a renewed ban, or simply granted another temporary reprieve to continue operating in the United States.

The uncertainty stems from a federal law requiring TikTok’s China-based parent company, ByteDance, to divest its US operations or face a nationwide ban, which took effect on January 19th.

A deadline looms

Adding to the suspense, President Donald Trump signed an executive order that delayed enforcement of the statute until April 5, providing TikTok with a temporary reprieve.

Now, with the clock ticking, the app’s future remains shrouded in ambiguity.

As he returned to Washington from his Florida residence on Sunday, President Trump injected a dose of optimism into the situation, telling reporters that a deal could be reached soon.

While he declined to provide specific details about potential buyers, Trump confirmed that his administration was engaged in talks with “four different groups” regarding TikTok.

“A lot of people want it and it’s up to me,” Trump stated aboard Air Force One, leaving the door open to a variety of possible outcomes.

A TikTok spokesperson declined to comment on the ongoing negotiations.

Ban or broker? Exploring the options

If TikTok is not sold to an approved buyer by the April 5th deadline, the original law mandating a nationwide ban would be reinstated.

However, Trump has also indicated that the executive order could be extended if necessary, further complicating the situation.

Trump’s initial attempt to ban TikTok during his first term, citing national security concerns, was ultimately halted by the courts.

His administration then attempted to broker a sale of the platform, but those efforts failed to materialize.

Despite his previous stance, Trump has since credited TikTok with helping him connect with younger voters during last year’s presidential election, leading to a shift in his perspective.

Bidding wars: a look at potential suitors

While it remains unclear whether ByteDance intends to sell TikTok, several potential bidders have emerged in recent months, each with their own vision for the app’s future.

Aides for Vice President JD Vance, who has been tapped to oversee a potential deal, have reportedly reached out to various parties, including the artificial intelligence startup Perplexity AI, to gather information about their bids.

In January, Perplexity AI presented ByteDance with a merger proposal that would combine Perplexity’s business with TikTok’s US operations.

Other potential contenders include a consortium led by billionaire businessman Frank McCourt, which recently recruited Reddit co-founder Alexis Ohanian as a strategic advisor.

According to Associated Press, Investors in this consortium have reportedly offered ByteDance $20 billion in cash for TikTok’s US platform, with plans to redesign the app using blockchain technology to provide users with greater control over their data.

Jesse Tinsley, the founder of the payroll firm Employer.com, has also organized a consortium, which includes the CEO of the video game platform Roblox, and is reportedly offering ByteDance more than $30 billion for TikTok.

While not actively involved in the current bidding process, Trump himself suggested in January that Microsoft was also considering a bid for the popular app.

Other potential suitors include Trump’s former Treasury secretary Steve Mnuchin and Rumble, a video site popular among some conservatives and far-right groups, which expressed its interest in joining a purchasing consortium last March.

Government involvement?

Adding another layer of complexity, Trump has expressed interest in having the US government broker a deal that would grant it 50% control of TikTok.

However, the administration has yet to provide details on what such an arrangement would entail or what role the government would play in the app’s future.

Some bidders have proposed allowing the US to invest in or own a stake in the platform, and Trump has suggested the possibility of a new government-owned investment fund holding a portion of TikTok.

China’s stance

Compared to last year, when Beijing vehemently opposed the forced divestment of TikTok, Chinese officials now appear to have adopted a more flexible position.

Chinese Foreign Ministry spokeswoman Mao Ning stated in January that business operations and acquisitions “should be independently decided by companies in accordance with market principles.”

However, she cautioned that “If it involves Chinese companies, China’s laws and regulations should be observed.”

If ByteDance agrees to negotiate a sale, the company would likely need to resolve complex issues with the US government regarding the proprietary algorithm that drives TikTok’s personalized content feeds, as well as the flow of content between the US and the rest of the world.

These negotiations could prove to be lengthy and challenging, adding further uncertainty to TikTok’s future in the United States.

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