Trump Declares TikTok Sale Near as Deadline Approaches
President Trump announces potential buyers for TikTok amid looming ban deadline
U.S. President Donald Trump announced that a deal for the sale of TikTok's U.S. operations is 'very close,' as the video app faces a potential ban if a sale is not completed by the upcoming weekend.
This imminent deadline stems from a law enacted in the United States last year, which mandates that TikTok's parent company, ByteDance, divest its interest in the platform due to national security concerns.
These concerns highlight fears over the Chinese government's potential access to U.S. users' data and possible influence operations conducted via the app, allegations that both Beijing and TikTok have denied.
In remarks made aboard Air Force One, Trump indicated that 'multiple investors' are nearing a definitive agreement, although the identity of the potential buyers remains a subject of speculation.
Among those reportedly interested in acquiring TikTok are Amazon, which has purportedly made a last-minute offer, as well as Larry Ellison, co-founder of Oracle, and Tesla CEO Elon Musk, who has previously been linked with the endeavor.
Other notable bidders include billionaire Frank McCourt, Tim Stokely, the British founder of OnlyFans, and popular YouTuber MrBeast, whose real name is Jimmy Donaldson, who is reportedly collaborating with investors to formulate a bid.
The structure of any potential deal is not yet clearly defined.
Earlier reports suggested that a likely buyer could emerge from TikTok's current non-Chinese investors, who might increase their shares in the company.
Additionally, there are discussions at the White House regarding a scenario where ByteDance retains ownership of the TikTok algorithm while leasing it to the new U.S. operating entity.
Uncertainty surrounds the implications if the sale does not occur before the April 5 deadline.
Trump previously indicated he might consider granting an extension should the need arise.
Analysts are cautiously optimistic about the negotiations, with Kelsey Chickering, a principal analyst at Forrester, stating that it is 'highly unlikely' TikTok would face another 'dark' period akin to its temporary offline status in January.
She highlighted that all indicators suggest a deal is in progress or that an extension will be granted.
The handling of TikTok’s algorithm is expected to play a critical role in the outcome of any transaction.
The algorithm is pivotal, influencing the relevance and engagement levels of content on the platform.
According to data, 31% of U.S. online adults describe TikTok as addictive, more than any other social media service.
A survey conducted last year revealed that 54% of TikTok users are worried that if the app changes ownership, the quality of their experience may decline, potentially leading users, creators, and advertisers to shift their engagement and spending to alternative media channels.
This imminent deadline stems from a law enacted in the United States last year, which mandates that TikTok's parent company, ByteDance, divest its interest in the platform due to national security concerns.
These concerns highlight fears over the Chinese government's potential access to U.S. users' data and possible influence operations conducted via the app, allegations that both Beijing and TikTok have denied.
In remarks made aboard Air Force One, Trump indicated that 'multiple investors' are nearing a definitive agreement, although the identity of the potential buyers remains a subject of speculation.
Among those reportedly interested in acquiring TikTok are Amazon, which has purportedly made a last-minute offer, as well as Larry Ellison, co-founder of Oracle, and Tesla CEO Elon Musk, who has previously been linked with the endeavor.
Other notable bidders include billionaire Frank McCourt, Tim Stokely, the British founder of OnlyFans, and popular YouTuber MrBeast, whose real name is Jimmy Donaldson, who is reportedly collaborating with investors to formulate a bid.
The structure of any potential deal is not yet clearly defined.
Earlier reports suggested that a likely buyer could emerge from TikTok's current non-Chinese investors, who might increase their shares in the company.
Additionally, there are discussions at the White House regarding a scenario where ByteDance retains ownership of the TikTok algorithm while leasing it to the new U.S. operating entity.
Uncertainty surrounds the implications if the sale does not occur before the April 5 deadline.
Trump previously indicated he might consider granting an extension should the need arise.
Analysts are cautiously optimistic about the negotiations, with Kelsey Chickering, a principal analyst at Forrester, stating that it is 'highly unlikely' TikTok would face another 'dark' period akin to its temporary offline status in January.
She highlighted that all indicators suggest a deal is in progress or that an extension will be granted.
The handling of TikTok’s algorithm is expected to play a critical role in the outcome of any transaction.
The algorithm is pivotal, influencing the relevance and engagement levels of content on the platform.
According to data, 31% of U.S. online adults describe TikTok as addictive, more than any other social media service.
A survey conducted last year revealed that 54% of TikTok users are worried that if the app changes ownership, the quality of their experience may decline, potentially leading users, creators, and advertisers to shift their engagement and spending to alternative media channels.
