Trump says TikTok deal is in the works. Here's where things stand with
the company
[March 12, 2025] By
HALELUYA HADERO
In less than a month, TikTok could have one or a few new owners, be
banned again, or simply receive another reprieve to continue operating
in the United States.
Questions about the fate of the popular video sharing app have continued
to linger since a law requiring its China-based parent company to divest
or face a ban took effect on Jan. 19. After taking office, President
Donald Trump gave TikTok a 75-day reprieve by signing an executive order
that delayed enforcement of the statute until April 5.
As he returned to Washington from his Florida home on Sunday, Trump told
reporters that a deal could come soon. He did not offer any details on
the interested buyers, but said the administration was in talks with
“four different groups” about TikTok.
“A lot of people want it and it’s up to me,” Trump said aboard Air Force
One.
A TikTok spokesperson declined to comment.
What will happen on April 5?
If TikTok is not sold to an approved buyer by April 5, the original law
that bans it nationwide would once again go into effect. However, the
deadline for the executive order doesn't appear to be set in stone and
the president has reiterated it could be extended further if needed.
Trump’s order came a few days after the Supreme Court unanimously upheld
a federal law that required TikTok’s parent company, ByteDance, to
divest or be banned in January. The day after the ruling, TikTok went
dark for U.S. users and came back online after Trump vowed to stall the
ban.
During his first term, Trump tried to ban TikTok on national security
grounds, which was halted by the courts before his administration
negotiated a sale of the platform that eventually failed to materialize.
He changed his position on the popular app during last year's
presidential election and has credited the platform with helping him win
more young voters.
The decision to keep TikTok alive through an executive order has
received some scrutiny, but it has not faced a legal challenge in court.
Who wants to buy TikTok?
Although it’s unclear if ByteDance plans to sell TikTok, several
potential bidders have come forward in the past few months.
Aides for Vice President JD Vance, who was tapped to oversee a potential
deal, have reached out to some parties, such as the artificial
intelligence startup Perplexity AI, to get additional details about
their bids, according to a person familiar with the matter. In January,
Perplexity AI presented ByteDance with a merger proposal that would
combine Perplexity’s business with TikTok’s U.S. operation.
[to top of second column] |
A visitor passes the TikTok exhibition stands at the Gamescom
computer gaming fair in Cologne, Germany, Thursday, Aug. 25, 2022.
(AP Photo/Martin Meissner, File)
 Other potential bidders include a
consortium organized by billionaire businessman Frank McCourt, which
recently recruited Reddit co-founder Alexis Ohanian as a strategic
advisor. Investors in the consortium say they’ve offered ByteDance
$20 billion in cash for TikTok’s U.S. platform. And if successful,
they plan to redesign the popular app with blockchain technology
they say will provide users with more control over their online
data.
Jesse Tinsley, the founder of the payroll firm
Employer.com, says he too has organized a consortium, which includes
the CEO of the video game platform Roblox, and is offering ByteDance
more than $30 billion for TikTok.
Trump said in January that Microsoft was also eyeing the popular
app. Other interested parties include Trump’s former Treasury
secretary Steve Mnuchin and Rumble, the video site popular with some
conservatives and far-right groups. In a post on X last March,
Rumble said it was ready to join a consortium of parties interested
in purchasing TikTok and serving as a tech partner for the company.
What could happen next?
Trump has said he is looking to have the U.S. government broker a
deal for 50% control of TikTok. However, the administration hasn't
provided details on what exactly that would entail, or what role the
U.S. government could play in the future of the short-form video
app.
Some potential bidders have floated proposals that would allow the
U.S. to invest or own a stake in the platform. Last month, Trump
himself also said the U.S. could own part of TikTok through a new
government-owned investment fund.
Chinese officials, who would have to approve the deal, appear to
have softened their stance on the issue compared to last year when
Beijing called the push for divestment a “robbers” act.
Chinese Foreign Ministry spokeswoman Mao Ning said in January that
business operations and acquisitions “should be independently
decided by companies in accordance with market principles.”
“If it involves Chinese companies, China’s laws and regulations
should be observed,” Mao said.
If ByteDance sits down to negotiate, the company would likely need
to iron out major details with the U.S. over the proprietary
algorithm that populates TikTok feeds as well as the flow of content
between the U.S. and the rest of the world.
_________
Associated Press reporters Michelle Price and Didi Tang contributed
to this story from Washington.
All contents © copyright 2025 Associated Press. All rights reserved |
