TikTok Must Find Non-Chinese Owner by Saturday to Avert US Ban

[NEW YORK] TikTok on Friday (Apr 4) was hours from a deadline to find a non-Chinese owner or face a ban in the United States.

TikTok’s Deadline Looms

The hugely popular video-sharing app, which has more than 170 million American users, is under threat from a US law that passed overwhelmingly last year and orders TikTok to split from its Chinese owner ByteDance or get shut down in the United States.

US President’s Promise

US President Donald Trump on Thursday said his administration was “very close” to a deal to find a buyer for TikTok, adding that it involved “multiple” investors but giving no further details.

Solution Lies in Reducing Chinese Ownership

According to reports, the most likely solution would see existing US investors in ByteDance roll over their stakes into a new independent global TikTok company.

Additional US investors, including Oracle and Blackstone, the private equity firm, would be brought on to reduce the proportion of Chinese investors.

Tariffs May Play a Role

Trump also suggested TikTok could even be part of a broader deal with China to ease the stinging tariffs he imposed on Beijing as part of a worldwide blitz of levies.

Asked Thursday if he was willing to make deals with countries on tariffs, he said: “As long as they are giving us something that is good. For instance with TikTok.”

Uncertainty Remains

Much of TikTok’s US activity is already housed on Oracle servers, and the company’s chairman, Larry Ellison, is a longtime Trump ally.

But uncertainty remains, particularly over what would happen to TikTok’s valuable algorithm. The New York Times suggested the new company could license it from ByteDance.

Other Proposals

Amazon has also reportedly made a last-minute bid to buy TikTok.

Other proposals include an initiative called “The People’s Bid for TikTok,” launched by real estate and sports tycoon Frank McCourt’s Project Liberty initiative.

Artificial intelligence startup Perplexity recently expressed interest in buying TikTok, as did a joint venture involving YouTube mega-celebrity MrBeast.

Conclusion

The fate of TikTok in the United States remains uncertain, with a deadline looming to find a non-Chinese owner or face a ban. While President Trump has expressed confidence in finding a buyer, uncertainty surrounds the future of the app’s valuable algorithm and the role of tariffs in any deal.

FAQs

Q: What is the deadline for TikTok to find a non-Chinese owner or face a ban in the United States?

A: The deadline is April 5, 2023.

Q: What is the most likely solution to the TikTok ownership crisis?

A: According to reports, the most likely solution would see existing US investors in ByteDance roll over their stakes into a new independent global TikTok company, with additional US investors brought on to reduce the proportion of Chinese investors.

Q: Will the new company license TikTok’s algorithm from ByteDance?

A: The New York Times suggested the new company could license it from ByteDance, but uncertainty remains over the future of the algorithm.

Q: Who are some of the other companies that have expressed interest in buying TikTok?

A: Amazon, Oracle, Blackstone, Perplexity, and a joint venture involving YouTube mega-celebrity MrBeast have all reportedly expressed interest in buying TikTok.