Former President Donald Trump is nearing a deal to sell TikTok, the popular social media app. TikTok faces a possible ban in the United States unless its Chinese parent company, ByteDance, sells the app this week. Last year, Congress passed a law demanding ByteDance sell TikTok because of concerns about national security. TikTok was briefly taken down in the US in January, but Trump delayed the ban until 5 April. If no deal is made by then, TikTok could be removed from US app stores again.
Why TikTok Faces a Ban
The US government has said that China might have access to TikTok’s user data, which could pose a security risk. China has denied these claims, but the US has pushed for ByteDance to sell the app to prevent any potential data leaks. TikTok’s future in the US is uncertain. If no sale happens by 5 April, the app could once again be removed from the Apple App Store and Google Play Store.
Major Companies Join the Bid for TikTok
As the deadline approaches, many big companies are trying to buy TikTok. Speaking on Air Force One, Trump said that several buyers are close to a deal. One idea being discussed is that China would approve the sale in exchange for a deal on US tariffs. Amazon is one of the companies that made a last-minute offer. However, Amazon has refused to comment on the bid.
Other potential buyers include Oracle co-founder Larry Ellison and Elon Musk, though Musk has said he is not interested. Other bidders include Canadian investor Kevin O’Leary, who is famous for his role on Shark Tank, and Reddit co-founder Alexis Ohanian. Jimmy Donaldson, known as MrBeast, is also joining Ohanian and McCourt’s group in the bid. In addition, OnlyFans founder Tim Stokely has made a separate bid through his company Zoop.
There are also rumors that Microsoft, private equity firm Blackstone, venture capital group Andreessen Horowitz, and AI search startup Perplexity are interested in buying TikTok. The White House is even exploring a deal where ByteDance could keep control of TikTok’s algorithm while licensing it to a US-based company. This plan could ease data security concerns and allow the sale to go forward.
What Happens If No Deal Is Made?
If no deal is struck by 5 April, TikTok could again be removed from US app stores. Trump signed an executive order in January to delay the ban by 75 days. This gave TikTok more time to make a sale. However, the order did not cancel the law passed by Congress, which the US Supreme Court has upheld. If no sale is made, Trump could allow the law to stand while telling the Justice Department not to enforce it. This would allow Apple and Google to keep TikTok on their app stores without facing penalties.
TikTok quietly returned to app stores in February after Apple and Google received assurances that they would not be required to remove the app. Trump has said that he would “probably” extend the deadline again if necessary.
TikTok’s Competitors Get Ready
If TikTok is removed from US app stores, its competitors are ready to step in. TikTok had 170 million users in the US last year, with each user spending about 51 minutes a day on the app. If TikTok is banned, platforms like Instagram Reels and YouTube Shorts would likely see a boost. Both services already focus on short-form video content and could attract TikTok users.
Marketing experts believe advertisers would quickly shift their budgets to Meta (the parent company of Instagram) and Google (the parent company of YouTube) if TikTok is banned. Twitch, Amazon’s livestreaming platform, could also gain more users, especially as it expands beyond gaming content.
Another app that could benefit is Xiaohongshu, also known as RedNote in the US. This Chinese app has seen rapid growth in both the US and UK and offers a similar experience to TikTok. It focuses on lifestyle content and product recommendations, making it a natural alternative for TikTok users looking for a new platform.
The Future of TikTok
As the 5 April deadline approaches, the fate of TikTok remains uncertain. If no sale is reached, TikTok will likely be removed from US app stores. This would be a major setback for the app, which has millions of loyal users in the US. Competitors are already preparing to attract TikTok users, and advertisers are looking for new platforms to invest in.