Questions surrounding TikTok‘s future in the US have been doing the rounds of social media since a law was passed on January 19 this year, which required its parent company in China to sell the app or face a ban. After becoming the US President, Donald Trump gave TikTok 75-days of delay, pushing the deadline to April 5.
Trump has now revealed to the media that a deal may happen soon. He didn’t share any details about the buyers but mentioned that the government was talking to “four different groups” about TikTok.
Trump said that a “lot of people want it” and that the US government is dealing with four different groups. Although he did not give out any names or mention his preferred choice, he did say, that “all four are good.”
TikTok, owned by ByteDance from Beijing, has until April 5 to either sell its US business or face a ban in the country, based on a law passed during President Biden’s time in office.
Several well-known companies are interested in buying it. Trump has earlier mentioned Larry Ellison, the founder of Oracle, as a possible buyer. It is worth noting here that TikTok already works with Oracle to store its US user data.
It was also reported earlier that a group led by billionaire Frank McCourt and Reddit co-founder Alexis Ohanian is also interested in buying TikTok.
According to Bloomberg, Chinese officials have thought about the idea of Elon Musk buying TikTok’s US business, but they still want ByteDance to keep control of the app. However, Musk had dismissed the idea or interest in such an acquisition.
Another group interested in buying TikTok is Perplexity AI, which is based in San Francisco, the New York Post reported. It further suggested that there is also a group led by tech entrepreneur Jesse Tinsley, which includes YouTube star Jimmy Donaldson, also known as MrBeast.
Since the US is TikTok’s biggest and most profitable market, the competition is tough. Last year, TikTok’s US business was thought to be worth up to $50 billion, reported New York Post. ByteDance also runs a similar app, Douyin, just for China.
Trump has said he might extend the deadline if needed, after already pushing back the original January 19 deadline to avoid a sudden shutdown.
Trump has earlier suggested that the US government should own 50% of TikTok if the company is sold. However, ByteDance has shown no interest in selling its US business.
TikTok CEO Shou Chew has met with Trump before and also attended his inauguration to build a relationship with him. Chew’s efforts could be seen as a part of TikTok’s attempt to deal with US government concerns about the app, reported the New York Post.
ByteDance has been trying to reassure American lawmakers about national security to keep its business in the US. It is privately valued at over $400 billion, according to investors like SoftBank, reported the New York Post.
If TikTok’s US operations are sold, the Chinese government would also need to approve the deal, and they have been against it so far. Recently, ByteDance bought back shares from its employees at a $312 billion valuation, showing confidence in its growth plans.
