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TikTok’s Future in the U.S. Hinges on a Buyout by April Deadline
For TikTok to continue its operations in the United States and avert an impending ban, its parent company, China-based ByteDance, must secure a buyer outside of China by April 5th. Several American firms have previously shown interest in acquiring the popular short-form video platform. In 2019, when then-President Donald Trump expressed concerns about TikTok, U.S. companies including Walmart, Oracle, and Microsoft emerged as potential buyers.
By August 2020, Microsoft was reportedly engaged in serious negotiations with ByteDance regarding TikTok’s future. However, as the 2020 presidential campaign intensified, Trump’s focus shifted away from the app. Ironically, during the current 2024 presidential election campaign, Trump has reversed his stance, recognizing TikTok’s influence in attracting younger voters and boosting his visibility on the platform.
In April 2024, President Joe Biden enacted legislation that granted ByteDance until January 19th—just before Trump’s anticipated second inauguration—to locate a buyer that meets the non-Chinese criteria. On his first day back in office, Trump issued an executive order extending the deadline by an additional 75 days, creating an April 5th cutoff for a potential sale. Vice President J.D. Vance expressed optimism that a deal to keep TikTok operational in the U.S. will be finalized before the April deadline.
“There will almost certainly be a high-level agreement that I think satisfies our national security concerns, allowing for a distinct American TikTok enterprise,” stated Vice President Vance during an interview with NBC News while aboard Air Force Two.
Vance mentioned that Trump has asked him to facilitate the deal, and he is collaborating with national security adviser Michael Waltz to find an acceptable U.S. buyer for TikTok. Notably, Vance has a background in venture capital, which may aid in the negotiations.
Despite concerns raised by U.S. lawmakers, including those from Trump, about TikTok’s data privacy practices—specifically allegations of the app collecting personal information from younger users and promoting propaganda—Vance believes that a viable solution can address these issues effectively.
“I think whether it’s through an extension or by securing a deal that meets national security concerns, we will arrive at a point where TikTok remains operational while also safeguarding Americans’ data privacy,” Vance noted.
TikTok’s valuation has reached as high as $50 billion, with Reid Rasner, CEO of Omnivest Financial, reportedly submitting a bid of $47.45 billion for the app. However, ByteDance has not confirmed ongoing discussions with any potential American buyers and remains non-committal regarding the app’s future ownership.
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