TikTok Faces New US Deadline To Ditch Chinese Owner

The immensely popular video-sharing platform TikTok, which claims over 170 million users in America, is confronting a potential ban due to a US law enacted last year that requires TikTok to disconnect from its Chinese parent company, ByteDance, or risk being prohibited in the United States.

On Thursday, April 3, President Donald Trump of the United States indicated that his administration was “very close” to finalizing an agreement to identify a purchaser for TikTok, mentioning that the arrangement included “multiple” investors, though he refrained from sharing additional specifics.

Driven by worries about national security and the prevailing opinion in Washington that TikTok is effectively governed by the Chinese government, the legislation took effect on January 19, merely one day prior to Trump’s inauguration.

In the moments approaching the cutoff date, TikTok briefly ceased operations in the US and vanished from app stores, sparking irritation among millions of its users. Nevertheless, Trump promptly declared a 75-day postponement, and TikTok was restored for current users and reappeared on the Apple and Google app stores in February.

This postponement is scheduled to conclude at midnight (0400 GMT) on April 5, yet Trump has minimized the perceived dangers, voicing optimism about finding a buyer for TikTok’s US operations. The president also hinted that TikTok might be integrated into a larger agreement with China designed to tackle the tariffs he levied on Beijing as part of an extensive trade campaign.

When questioned about his willingness to negotiate on tariffs, Trump responded: “As long as they are giving us something that is good. For instance with TikTok.” He elaborated, “We have a situation with TikTok where China will probably say we’ll approve a deal, but will you do something on the tariffs. The tariffs give us great power to negotiate.”

Speculation indicates that the most probable resolution would see current US investors in ByteDance transferring their shares into a newly autonomous global TikTok entity. Further US investors, such as Oracle and private equity group Blackstone, would join to diminish ByteDance’s ownership. TikTok’s US activities are already hosted on Oracle servers, and Larry Ellison, Oracle’s chairman, is a longstanding ally of Trump.

Even so, ambiguity persists regarding the future of TikTok’s algorithm, which is deemed essential to its achievements. “TikTok without its algorithm is like Harry Potter without his wand — it’s simply not as powerful,” remarked Forrester Principal Analyst Kelsey Chickering. “If the TikTok experience degrades, users, creators, and advertisers will spend more time and money on other media channels,” she continued.

The New York Times proposed that the new entity might obtain a license for the algorithm from ByteDance. However, such a setup could weaken the law’s foundation, which partly stems from the fear that TikTok’s algorithm could be exploited by the Chinese government to harm US interests.

In the closing days before the deadline, Amazon reportedly submitted a last-second offer to purchase TikTok, while other suggestions have surfaced, including “The People’s Bid for TikTok,” spearheaded by real estate and sports magnate Frank McCourt’s Project Liberty initiative. Artificial intelligence company Perplexity and a collaborative effort involving YouTube star MrBeast, alongside a proposal from adult content site OnlyFans, have also shown interest in acquiring the app.

Trump, who had endorsed a ban during his initial term, has lately adopted a more positive perspective on TikTok, seeing it as a tool for gaining favor with younger voters in the November election. Moreover, one of Trump’s key political contributors, billionaire Jeff Yass, holds a substantial stake in ByteDance, TikTok’s parent company.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli