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| The TikTok logo is pictured outside the company's U.S. head office in Culver City, California, U.S., on September 15, 2020. Credit: REUTERS/Mike Blake |
By Agboola Aluko | GLiDE NEWS | April 5, 2025
T ikTok, the social media giant with over 170 million American users, is facing a critical turning point as the United States pushes for its Chinese parent company, ByteDance, to divest ownership or face an outright ban.
Under a U.S. law enacted in 2024 and set to take full effect at midnight on April 5, TikTok could be removed from app stores and barred from operating unless a deal is reached to separate it from Chinese ownership. The legislation, backed by strong bipartisan support, stems from concerns that the app may pose national security risks due to its ties to China.
President Donald Trump, speaking on Thursday, stated that his administration was "very close" to finalizing a deal involving multiple American investors, although no names were officially confirmed. The President also hinted at the possibility of incorporating TikTok into a broader trade negotiation framework with Beijing, using tariffs as a bargaining tool.
“We have a situation with TikTok where China might approve a deal, but in return, they might want something on tariffs,” Trump said. “Those tariffs give us incredible leverage.”
TikTok's uncertain fate has prompted a flurry of proposed deals and investor interest. Among the most likely outcomes is the formation of a new global TikTok entity, where U.S. investors would consolidate their stakes and diminish ByteDance's controlling share. Major players such as Oracle and Blackstone are reportedly involved in discussions, with Oracle already managing a significant portion of TikTok’s U.S. data infrastructure.
However, one of the thorniest issues remains unresolved: control over TikTok's algorithm—the very engine that drives its unmatched content personalization. Analysts warn that without access to the algorithm, TikTok’s appeal could collapse.
“TikTok without its algorithm is like Harry Potter without his wand—it loses its magic,” said one industry analyst. “If user experience suffers, audiences and advertisers will quickly migrate to other platforms.”
Though some have suggested that the algorithm could be licensed from ByteDance, such a workaround might run afoul of the spirit of the U.S. law, which is designed to eliminate any potential Chinese government influence over the platform.
Amid the flurry of interest, unexpected bidders have emerged. Tech giant Amazon is said to have made a last-minute offer, while real estate magnate Frank McCourt launched a public campaign dubbed “The People’s Bid for TikTok.” Other interested parties reportedly include the AI startup Perplexity, a group led by YouTube celebrity MrBeast, and even a proposal from the content platform OnlyFans.
Interestingly, Trump’s tone has softened in recent months, despite previously supporting a ban. Observers note that TikTok’s popularity among young voters could have played a role in shaping this new stance, especially in light of the recent election cycle.
Adding a layer of intrigue, billionaire Jeff Yass—a major political donor to Trump—is known to hold a substantial stake in ByteDance, further fueling speculation about behind-the-scenes negotiations.
As the deadline approaches, millions of American users and content creators are watching closely, waiting to see whether the platform will continue to operate in its current form—or be forced to undergo a dramatic transformation.
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