The future of TikTok in the United States remains unclear as ongoing tensions between Washington and Beijing threaten the popular video app’s survival. With growing doubts surrounding the app’s ability to comply with US regulations, a closer look at the situation reveals how TikTok reached this point, who is interested in purchasing the app, and what could happen next.
How Did TikTok Get to This Point?
TikTok, with over 170 million users in the US, has become a key part of the digital economy for many creators. However, the app’s fate in the US has been hanging by a thread since the Trump administration began considering various actions to address concerns over its ownership structure.
The plan to resolve the situation by changing TikTok’s ownership and meeting the divest-or-ban law had initially received support from both TikTok’s parent company, ByteDance, and some US investors. According to reports, the new ownership structure would allow US investors to control 50% of the company, with current investors holding 30%, and Chinese owners maintaining less than 20%.
However, President Trump’s announcement of significant tariffs on Chinese imports has created a major obstacle. ByteDance requires approval from Beijing for any deal involving TikTok’s assets, but China has reportedly blocked the deal due to these tariffs, which now total 54%.
Who is Interested in Buying TikTok?
TikTok’s US operations are estimated to be worth between $40 billion and $50 billion, according to CFRA Research analysts. This value is based on the app’s 115 million monthly users and its revenue compared to competitors like Instagram and Reddit.
In the early stages, President Trump mentioned tech billionaire Elon Musk and Oracle CEO Larry Ellison as potential buyers. Later, it became clear that multiple parties were interested. Among them, Oracle, venture capital firm Andreessen Horowitz, and other US investors have made moves to buy TikTok’s US operations from its Chinese owners.
Other prominent figures have also shown interest, including YouTuber MrBeast (Jimmy Donaldson), who is part of a group bidding over $20 billion for TikTok, alongside Roblox CEO David Baszuck and other investors. Additionally, Perplexity AI has proposed merging TikTok with its AI-powered search engine.
In the final hours before the deadline, even Amazon and OnlyFans founder Tim Stokely, teamed up with a crypto foundation, made a bid to acquire TikTok.
Key Moments in the TikTok Saga
The journey leading to this point has been filled with legal and political challenges. Here’s a brief timeline:
- March 2024: The US intelligence community alleged that China used TikTok to influence the 2022 US elections.
- April 2024: The US passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which sought to restrict TikTok.
- May 2024: TikTok, ByteDance, and US users filed a lawsuit challenging the law, claiming it infringed on free speech.
- December 2024: A lower court upheld the law, prompting TikTok to seek an emergency injunction from the US Supreme Court.
- January 2025: The US Supreme Court ruled in favor of the law, confirming concerns over TikTok’s ties to China.
- January 19, 2025: TikTok was briefly unavailable in the US, with users seeing a pop-up message.
- March 2025: US Vice President JD Vance expressed optimism about completing a deal by the April 5 deadline.
- April 2025: Trump signed an executive order extending the deadline for TikTok’s potential ban by 75 days.
What Happens Next for TikTok?
The situation for TikTok is still developing. While the divest-or-ban law does not directly target TikTok, it impacts the app’s availability through platforms like Apple’s App Store and Google Play Store. The law also affects cloud service providers like Oracle, which have been key to hosting the app’s data in the US.
US Attorney General Pam Bondi has written to Apple, asking the company to continue hosting TikTok on its App Store for an additional 75 days, and Apple has reportedly agreed to this request.
With the ongoing trade war between the US and China, the outcome for TikTok remains uncertain. On April 7, Trump threatened further tariffs on China if the country continued its retaliatory actions, making it even more complicated for TikTok’s future in the US.
The Road Ahead: A Complex Situation
TikTok’s future in the US is now tied to the larger geopolitical conflict between Washington and Beijing. As the US seeks to secure its interests, the app’s fate could depend on the outcome of ongoing negotiations and the ability of US lawmakers to navigate the complex relationship with China.
