TikTok could be sold soon. US President Donald Trump spoke to reporters aboard Air Force One and revealed that he is negotiating with four different bidders to buy TikTok. He also claims that a deal for the social media company could come “soon.” However, he did not name the possible bidders.
Extending the deadline
TikTok faced a potential ban in the US earlier this year. A bipartisan law had previously given TikTok until the 19th of January to sell itself or risk facing a ban. However, TikTok decided to take its US operations offline ahead of the ban.
Trump intervened, granting TikTok a 75-day reprieve that could now stretch beyond April 5. Last week, he expressed willingness to extend the deadline if necessary but stayed optimistic about striking a deal within the month.
Several groups have expressed interest in acquiring TikTok. Project Liberty is one of them. Reddit’s co-founder Alex Ohanian recently joined them, adding some weight to the group’s reputation and funds. Popular YouTuber MrBeast is also part of an investment group that has managed to pool $20 billion in their own bid.
Trump himself has signed an executive order to create a sovereign wealth fund. One potential use for the fund is to buy TikTok and bring it under US control. There have been rumors that Elon Musk could buy TikTok, but the billionaire has shot those rumors down.
Not so easy
Even with four bidders lined up, Trump can’t guarantee a sale of TikTok, which remains under the ownership of the Chinese company ByteDance. China, so far, hasn’t been keen on letting TikTok go. ByteDance itself hasn’t indicated any interest in selling off its US operations either.
TikTok’s algorithm is a tech that is highly desired in the social media space, and China wants to protect it from foreign entities. It’s not hard to see why. The app’s ability to hook users and keep them engaged for hours and make eerily accurate recommendations has monetization written all over it. But will Trump succeed? There are a lot of hurdles to overcome, so nothing is guaranteed as of now.
