TikTok, owned by the Chinese firm ByteDance, has faced controversy in the U.S. for four years over concerns that user data might be accessed by the Chinese government. Recently, the app experienced a brief outage that left millions of users anxious before service was quickly restored.
Despite returning to app stores, TikTok’s future in the U.S. is still unclear, with several investors vying to buy the platform. Estimates suggest its U.S. operations could be valued at over $60 billion, according to CFRA Research’s Angelo Zino.
TikTok Ban: A Timeline of Events
The saga began in August 2020 when Trump signed an executive order aimed at banning transactions with ByteDance. A month later, his administration sought to force the sale of TikTok’s U.S. operations, with Microsoft, Oracle, and Walmart as potential buyers. However, a U.S. judge blocked the executive order, allowing TikTok to continue operating amid ongoing legal disputes.
Last year, following the Biden administration’s transition, the U.S. House passed legislation against TikTok, leading to a Senate vote and a bill signed by President Biden requiring a sale or ban of the app. TikTok subsequently sued the U.S. government, claiming the ban violated its First Amendment rights and asserting that it posed no security threat.
A Shift in Stance
In a surprising turn, on December 27, 2024, Trump voiced opposition to a TikTok ban, suggesting he could find a way to keep the app in the U.S. In January, the Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), prompting TikTok to announce a temporary shutdown. However, it was back online within hours, stating, “Thanks to President Trump’s efforts, TikTok is back in the U.S.”
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On January 20, Trump signed an order delaying the ban for 75 days, giving TikTok time to negotiate a sale or partnership with a U.S. company, aiming for a 50-50 ownership split with ByteDance. As of early March, Trump confirmed discussions with four groups interested in acquiring the platform.
Potential Buyers
While no deal has been finalized, potential buyers include:
- Frank McCourt: Former Dodgers owner is leading a consortium called The People’s Bid, focusing on privacy and data control.
- Jesse Tinsley: Leading an American investor group with a $30 billion cash offer.
- Other Notable Investors: Bobby Kotick (former Activision CEO), Steven Mnuchin (former Treasury Secretary), Oracle, Walmart, Microsoft, and Rumble have all expressed interest.
The landscape continues to evolve, and further developments are anticipated soon.
SOURCE: TECH CRUNCH
