Former US President Donald Trump has stated he feels “very close” to finalizing a deal for TikTok, the popular social media app owned by the Chinese company ByteDance. However, the clock is ticking. TikTok faces removal from US app stores unless ByteDance sells the platform to a US-based company by the end of the week. A bipartisan law passed last year forces ByteDance to divest from TikTok or face a nationwide ban. If no agreement is reached, TikTok could be pulled from platforms like Apple’s App Store and Google Play.
Legal Pressure Mounts as Deadline Approaches
The deadline, set for April 5, was pushed back by Trump in January after TikTok briefly went offline in the United States when the law took effect. Trump’s intervention postponed the ban for 75 days, but that delay is now quickly running out. While Trump could allow the law to stand, there’s speculation he might order the Department of Justice not to enforce it, meaning Apple and Google would not be required to remove TikTok. This would give ByteDance more time to finalize the sale, but the legal clock is ticking.
Washington officials have long argued that TikTok represents a national security threat because Chinese authorities could access sensitive American data through the platform. Beijing has strongly denied these claims. The US government’s insistence on a sale stems from concerns over the app’s potential access to personal data, including the browsing habits and locations of millions of Americans.
Major Players Eye TikTok Acquisition
During a flight aboard Air Force One, Trump revealed that multiple investment groups were close to reaching an agreement to acquire TikTok. Trump also hinted that China might approve the sale in exchange for reducing American tariffs on Chinese goods. The speculation sparked intense interest from several major tech giants, investors, and even billionaires looking to capitalize on TikTok’s immense value.
One of the leading contenders in the bidding war is Amazon. The company reportedly submitted a late-stage proposal to acquire TikTok, but declined to make a public statement on the matter. Trump also mentioned Larry Ellison, co-founder of Oracle, as a potential buyer, although he did not confirm any deal. Elon Musk, owner of Tesla and SpaceX, was also rumored to be interested, though Musk later denied any intentions to acquire TikTok.
In addition to these tech titans, other prominent figures and companies have expressed interest in the acquisition. Frank McCourt, a billionaire investor, has teamed up with Kevin O’Leary, a Shark Tank personality, to form a group bidding for TikTok. Reddit co-founder Alexis Ohanian confirmed he is also part of McCourt’s consortium. Meanwhile, MrBeast (Jimmy Donaldson), the world’s most popular YouTuber, has shown interest in joining the bidding group as well.
Additionally, British entrepreneur Tim Stokely, founder of the adult content platform OnlyFans, has submitted a bid through his newly relaunched company, Zoop. Other contenders include major players like Microsoft, Blackstone, Andreessen Horowitz, and Perplexity, an AI company. The White House is reportedly considering one option that would allow ByteDance to retain ownership of TikTok’s algorithm while leasing it to a newly formed US entity.
The Clock Ticks: Can Trump Secure a Deal?
The deal deadline is fast approaching, and time is running out for ByteDance to comply with the law. If no sale takes place by April 5, TikTok will once again face removal from US app stores. While Trump could extend the deadline once more, as he suggested recently, he has not made any official decisions yet. The situation is dire, and it remains unclear how the administration will act if no agreement is reached.
Trump’s executive order in January delayed the ban, but the law passed by Congress remains in effect. The Supreme Court upheld the law, making it more difficult for Trump to alter its enforcement without serious legal consequences. As of now, TikTok remains available in both Apple and Google’s app stores, but that could change soon if no sale occurs.
Competitors Look to Capitalize on TikTok’s Troubles
TikTok’s 170 million active users in the US are a significant market share, and its 51 minutes per day of engagement per user makes it a powerful force in the social media world. If the app is removed from US app stores, competitors such as Instagram Reels, YouTube Shorts, and Amazon’s Twitch are expected to see significant gains in user numbers and advertising revenue.
Instagram Reels, part of Meta, could see an influx of TikTok users, especially those who create short-form video content. YouTube Shorts, already a rival to TikTok, could attract creators who are no longer able to use the Chinese platform. Amazon’s Twitch, primarily known for gaming content, could also see an uptick in users, particularly as it expands its content offerings to appeal to a broader audience.
One other platform that might benefit from TikTok’s woes is Xiaohongshu, or RedNote, a Chinese app that has gained popularity in both the US and UK. Xiaohongshu could expand its presence even further if TikTok faces a ban, creating new competition for the social media space.
What’s Next for TikTok and ByteDance?
As the deadline nears, ByteDance remains under immense pressure to finalize a sale of TikTok. While Trump pushes for a deal, the app’s future in the US remains uncertain. Whether the Chinese government will approve the sale in exchange for trade concessions or whether any of the major bidders can strike a deal in time remains to be seen.
If TikTok is removed from US app stores, the ripple effect will be felt across the social media landscape, and its competitors are already preparing for a potential surge in users. The situation remains fluid, with many questions still unanswered as the April 5 deadline draws closer.
