As the deadline for TikTok's sale approaches, President Donald Trump has extended the timeline, giving the popular social media app another 75 days to find a non-Chinese buyer. This decision, made on April 4, 2025, marks the second time Trump has pushed back the deadline since taking office, reflecting ongoing negotiations and concerns over national security.
The original deadline for TikTok to be sold was set for April 5, 2025, following a bipartisan law passed by Congress that mandates the Chinese-owned app to divest its U.S. operations due to fears of data privacy and potential manipulation by the Chinese government. The law specifically targets applications controlled by foreign adversaries, including TikTok and its parent company, ByteDance.
According to reports, the Trump administration is contemplating a deal that would allow China to maintain control over TikTok's algorithm while leasing it to a U.S. company with a minority ownership stake. This arrangement has raised questions about compliance with U.S. laws that prohibit operational relationships between U.S. apps and entities controlled by foreign adversaries.
"My administration has been working very hard on a deal to save TikTok, and we have made tremendous progress," Trump stated on his social media platform, Truth Social. However, he acknowledged that further work is needed to ensure all necessary approvals are signed.
Potential buyers have emerged, including tech giants Amazon and Oracle, as well as a consortium led by OnlyFans founder Tim Stokely. Stokely's startup, Zoop, backed by a cryptocurrency foundation, submitted a late-stage plan to bid for TikTok's U.S. operations. Amazon has also expressed interest in acquiring the app, sending a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick to join the bidding war.
In addition to Amazon and Stokely's consortium, Blackstone is in discussions to partner with ByteDance's existing non-Chinese investors, such as Susquehanna International Group and General Atlantic, to fund a potential bid. Meanwhile, Andreessen Horowitz is reportedly in talks to provide external funding for a rival offer led by Oracle and a group of American investors.
The urgency of the situation is compounded by the fact that TikTok boasts over 170 million American users, making it a significant player in the social media landscape. However, the app's future remains uncertain as Beijing officials have publicly opposed the sale, emphasizing that the proprietary algorithm cannot leave China.
The U.S. government is actively facilitating efforts to create a separate U.S. entity for TikTok, aiming to reduce Chinese ownership to below the 20% threshold mandated by legislation. This move is seen as crucial to addressing national security concerns, especially regarding how TikTok handles U.S.-based user data.
In the past, the Biden administration had demanded that TikTok's U.S. operations be sold or face a nationwide ban over these national security issues. The law enacted last year gave ByteDance until January 19, 2025, to divest its U.S. business, a deadline that was upheld by the Supreme Court.
As the countdown to the new deadline continues, Trump has hinted that tariffs on Chinese imports could play a role in negotiations. He previously imposed tariff duties totaling 54% on Chinese goods, which could be leveraged to encourage a deal. "If China lets a sale go ahead, I may reduce tariffs or hold back on implementing higher ones," Trump remarked.
Despite the looming deadline, no definitive agreement has been reached. Trump has indicated that if a satisfactory arrangement isn't made by the new deadline, the ban could go into effect, leaving millions of U.S. users without access to TikTok.
As the situation develops, the stakes remain high for all parties involved. The outcome of these negotiations could reshape the landscape of social media in the U.S. and set a precedent for future dealings with foreign-owned tech companies.
In summary, TikTok's future hangs in the balance as the deadline for a sale approaches. With major players vying for a stake in the app and ongoing negotiations with the Chinese government, the coming weeks will be critical in determining whether TikTok can secure its place in the U.S. market.
