Could TikTok be banned again and who might buy it?

TechnologyMarch 31, 20254 min read

Could TikTok be banned again and who might buy it?

Could TikTok be banned again and who might buy it?

Could TikTok be banned again and who might buy it?

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The popular social media app TikTok is currently facing uncertainty regarding its future in the United States. President Donald Trump has announced that a deal to sell TikTok must be finalized by April 5. This announcement comes after a law was enacted that would ban TikTok unless it was sold by its parent company, ByteDance. In January, TikTok was banned for a brief period, but it returned to app stores shortly after Trump won the election. He signed an executive order that postponed the ban for 75 days, allowing time for negotiations. Since then, various tech companies, celebrities, and investors have expressed interest in purchasing the app. Trump's executive order carries legal weight, as it was signed on January 21, shortly after he took office. However, this order does not nullify the ban; instead, it instructs the US attorney general to refrain from enforcing the law for the time being. This gives the new administration the opportunity to determine the best course of action. The order also allows Trump to challenge a Supreme Court ruling that upheld the ban on January 17. The Supreme Court stated that the ban was intended to prevent China, identified as a foreign adversary, from using its control over ByteDance to access the personal data of US TikTok users. Trump has expressed his desire for TikTok to remain operational in the US. The extended deadline for TikTok's sale means that ByteDance has until April 5 to find a buyer. If no agreement is reached, the app could face another ban and be removed from mobile app stores. However, Trump could choose to maintain the law while instructing the Department of Justice to ignore it, effectively allowing Apple and Google to continue hosting TikTok without facing penalties. This would mean that the law would still exist but would not be enforced. TikTok was allowed to remain on app stores after companies were informed they would not face consequences for hosting the app. Trump has also indicated that he might consider selling TikTok to other parties. Who are the potential buyers for TikTok? ByteDance has consistently maintained that TikTok is not for sale, but it remains unclear if this stance has changed under Trump's administration. On March 30, Trump informed reporters that there is significant interest in purchasing TikTok, mentioning that his administration is in discussions with four different groups regarding a potential sale. Trump appears to be seeking a solution that aligns with the spirit of the law while allowing TikTok to continue operating. He has even suggested the possibility of a joint ownership arrangement, where TikTok would be co-owned by the United States and ByteDance. Several names have emerged as potential buyers for the app. Trump has expressed openness to selling TikTok to Larry Ellison, co-founder of Oracle, as well as Elon Musk. Other individuals previously linked to a potential purchase include billionaire Frank McCourt and Kevin O'Leary, a well-known investor from the television show Shark Tank. Alexis Ohanian, co-founder of Reddit, has also stated that he is collaborating with McCourt in his bid to acquire TikTok. Additionally, Jimmy Donaldson, known as MrBeast, the most popular YouTuber with over 300 million subscribers, has shown interest in buying TikTok after receiving inquiries from various investors. Companies like Microsoft are also reportedly involved in discussions to acquire TikTok, and a US search engine called Perplexity AI has even proposed a merger with the app. If TikTok were to be banned, what alternative platforms could users turn to? TikTok boasts approximately 170 million users in the United States, who spend an average of 51 minutes per day on the app. If TikTok is no longer available, other platforms such as Instagram Reels and YouTube Shorts could see an increase in users. This shift could be significant for advertisers, as they often seek to reach audiences on popular platforms. Kelsey Chickering, an analyst at the market research firm Forrester, noted that marketing executives have indicated they would redirect their advertising budgets to Meta and Google if TikTok is no longer an option. Other potential beneficiaries include Twitch, a platform known for live streaming, which has gained popularity among gamers but is also expanding its content offerings. Additionally, another Chinese-owned platform known as RedNote has experienced rapid growth in both the US and the UK.

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