TikTok, which is owned by ByteDance in China, has faced persistent scrutiny in the United States for the past four years amid worries that the Chinese government could access American user data.
Earlier this year, TikTok was briefly unavailable in the U.S., leaving millions uncertain until the service was rapidly restored. The app made its way back to both the App Store and Google Play Store in February.
Several investment groups are actively vying to acquire TikTok, and if a purchase is finalized, CFRA Research’s senior vice president Angelo Zino estimates the U.S. branch could be valued at more than $60 billion.
After long negotiations and Trump extending the deadline for the TikTok ban for a fourth time, there finally appears to be advancement. Reports this week say that the U.S. and China have outlined a “framework” agreement. Details indicate a consortium of investors—including Oracle, Silver Lake, and Andreessen Horowitz—may be given responsibility for overseeing TikTok’s U.S. business.
TikTok ban: A look at recent events
To fully grasp the ongoing saga, let’s review the key moments between TikTok and the U.S. government that led to court battles and several rounds of negotiation.
The dispute started in August 2020 when then-President Trump issued an executive order to block transactions with ByteDance, TikTok’s parent company.
One month later, the Trump administration tried to force TikTok’s American operations to be sold to a U.S. company. Microsoft, Oracle, and Walmart emerged as top candidates. However, a U.S. judge put a temporary hold on the executive order, allowing TikTok to keep running during the legal dispute.
Developments accelerated last year after President Biden took office. The U.S. House of Representatives voted overwhelmingly (360-58) to advance legislation targeting TikTok, and the Senate approved the measure on April 23, 2024.
Soon after, President Joe Biden signed a law mandating TikTok to either be sold or face a ban. In response, TikTok filed a lawsuit against the U.S. government, arguing the ban was unconstitutional and infringed on American users’ First Amendment rights. TikTok has repeatedly maintained that it is not a security risk, stating that its U.S. data management follows all local regulations.
Trump reconsiders his position
Image Credits: Mandel Ngan (opens in a new window) / Getty Images
On December 27, 2024, Trump expressed opposition to banning TikTok in a court filing, saying he might find a way for the app to remain in the U.S. This stance marked a sharp reversal from his policies as president and was an unexpected development for TikTok.
In January, the U.S. Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), widely known as “the TikTok ban.” TikTok responded by formally announcing it may need to cease operations on January 19.
TikTok goes offline…and quickly returns
Once the act took effect, TikTok did shut down in the U.S.—but the outage lasted less than half a day before the app was back online. According to the platform, “Thanks to President Trump’s efforts, TikTok is once again available in the U.S.”
Current status
On January 20, Trump signed an executive order that delayed the TikTok ban by 75 days. This delay gives TikTok more time to finalize a sale or negotiate a settlement with Trump, who is seeking to split ownership equally between ByteDance and an American company.
In early March, Trump told reporters his administration was negotiating with four different groups interested in purchasing TikTok, according to Reuters. More recently, The Information reported that Trump is planning to introduce TikTok America, a new company owned by U.S. investors that would hold approximately half of the American operations, while ByteDance would keep a 19.9% stake.
No final agreement has been reached so far regarding the sale, but news could break soon.
Here are some of the investor groups and firms rumored to be possible buyers for TikTok’s U.S. division. (Notably, Elon Musk is absent from this list.)
U.S. real estate billionaire Frank McCourt
Image Credits: COLE BURSTON / Contributor (opens in a new window) / Getty Images
The People’s Bid for TikTok
The People’s Bid for TikTok is a group organized by Frank McCourt, the founder of Project Liberty and former Los Angeles Dodgers owner. Guggenheim Securities and the law firm Kirkland & Ellis are assisting with the bid. This group’s primary aim is to acquire TikTok while prioritizing user privacy and data control, employing an open source strategy.
Key backers involved are:
- Alexis Ohanian: The Reddit co-founder recently joined The People’s Bid as a strategic advisor, with his involvement announced on March 3.
- Kevin O’Leary: The well-known investor and TV personality previously told Fox he was willing to pay $20 billion for TikTok. O’Leary became part of The People’s Bid on January 6.
- Tim Berners-Lee: The creator of the World Wide Web supports the initiative, stating, “Users should be able to have control over their own data.”
- David Clark: A senior research scientist at MIT’s Computer Science and Artificial Intelligence Lab, Clark has also joined the effort.
MrBeast
Image Credits:Dave Kotinsky / Getty Images
American Investor Consortium
Jesse Tinsley, founder and CEO of Employer.com, is leading a group of U.S. investors. Tinsley has put forward a $30 billion all-cash bid to acquire TikTok’s American business.
- David Baszucki: Tinsley shared with Bloomberg that the Roblox co-founder and CEO is involved in the consortium.
- Nathan McCauley: Bloomberg also confirmed that the Anchorage Digital co-founder and CEO—a leader in crypto platforms—is participating.
- Jimmy Donaldson (MrBeast): The well-known YouTube star has also reportedly joined as part of the investor group.
The Oracle headquarters
Image Credits:Paul Sakuma / AP
Other potential bidders
- Amazon: The e-commerce leader is the latest company reported to enter the competition.
- AppLovin: The mobile tech firm has also made an offer for TikTok, reportedly backed by Steve Wynn, the casino mogul behind several famous Las Vegas properties.
- Bobby Kotick: The ex-Activision CEO is said to be interested as well. With his background in the gaming industry, he may be eyeing ways to blend social media and gaming on the platform.
- Microsoft: The technology giant previously sought to buy TikTok, and Trump has recently said the company is once again in the running.
- Oracle: Oracle submitted a bid for TikTok in 2020. In January, its co-founder Larry Ellison commented to Trump that a 50% stake “seemed like a good deal.” The Information reported in March that Oracle is currently the leading candidate to become TikTok’s U.S. cloud infrastructure provider.
- Perplexity AI: CNBC reports that this AI search startup has also placed a bid.
- Rumble: The YouTube competitor announced on X its intention to acquire TikTok and serve as its cloud technology provider.
- Steven Mnuchin: The former Treasury Secretary under Trump has resumed talks about possibly buying TikTok.
- Walmart: The retail heavyweight may be considering TikTok as a way to expand its e-commerce reach, given the app’s influence on shoppers. Walmart had previously shown interest in 2020.
- Zoop: This social media startup, co-founded by OnlyFans creator Tim Stokely, joined forces with The Hbar Foundation to make a late-stage proposal to acquire TikTok’s U.S. business.
This article has been updated to reflect newly reported interested parties.
