GistNexus – April 1, 2025.
President Donald Trump has reaffirmed that a sale deal for TikTok from its Chinese parent firm, ByteDance, will be agreed before the next April 5 deadline. The deadline is significant for the app, used by 170 million Americans, because it will be banned in the United States if it remains under Chinese ownership.
Trump made the April 5 deadline in January following a 2024 law that was approved by both parties and calls for TikTok to find a non-Chinese buyer or face ban on national security grounds. The law, which was approved by both parties, says ByteDance must sell its holding in TikTok by January 19, 2025, or risk being banned.
Trump’s Statement on TikTok’s Future
In a recent statement aboard Air Force One, Trump highlighted the significant interest in TikTok, mentioning that there were “a lot of potential buyers” for the popular video-sharing app. “There’s tremendous interest in TikTok,” he said, “and I’d like to see TikTok remain alive.” His remarks were made as he was traveling on Sunday evening, underscoring the ongoing negotiations surrounding the app’s future.
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Despite the mounting tension, TikTok has yet to issue a public statement concerning the president’s recent remarks about the divestment deal. Nevertheless, the growing attention regarding TikTok ownership and its suspected ties to the Chinese government remain a central issue in the U.S.
Blackstone Seeks Minority Stake in TikTok
After Trump’s declaration, fresh reports have come to light regarding the potential investors racing to acquire TikTok’s American business. Private equity firm Blackstone is looking at a minority stake in TikTok’s American business, according to Reuters. People familiar with the situation confirmed that Blackstone is in talks to become a part of ByteDance’s existing non-Chinese investors such as Susquehanna International Group and General Atlantic to raise new capital to finish the bid for TikTok’s American business.
They became the favourites in the bid to acquire the app before the United States government deadline for ByteDance to be excluded. As much as talks are in the pipeline, Washington has insisted that TikTok being owned by ByteDance places it squarely in the lap of the Chinese government, raising concerns over the national security level of the application. American authorities are worried that Beijing may employ the app to conduct influence operations and collect data on U.S. users.
National Security and Data Privacy Concerns
The pressure for divestment from TikTok is in the context of rising national security concerns. Officials and legislators in the U.S. have worried that since ByteDance is a Chinese company, it could pass on users’ information from TikTok to the Chinese authorities. Despite ByteDance dismissing the allegations time and again, the concerns have given rise to legal and regulatory action.
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The Biden administration made the Protecting Americans from Foreign Adversary Controlled Applications Act into law in 2024, which stipulated that TikTok should sell by January 19, 2025, or face the threat of banning. The bill is a manifestation of the bipartisanship sentiment in Congress that TikTok could be a national security threat if its owner is still attached to China.
When TikTok was taken down during the January temporary shutdown, which lasted more than 12 hours, U.S. internet hosting services temporarily removed the app from their platforms. App stores like Google Play and Apple’s App Store also stopped providing TikTok for download, although such services were resumed later after Trump reassured hosting companies that they would not be hit with legal sanctions if they restored TikTok.
Can Trump Again Extend the Deadline?
It’s growingly speculated that Trump may make the April 5 deadline depend on whether or not he greenlights the deal to sell TikTok. It’s his authority under federal legislation that created the deadline a law in the first place to renew it another 90 days. This wasn’t his approach of January, though – rather, signing an executive order that deferred the ban yet another 75 days.
If necessary, Trump can issue another executive order before the April 5 deadline for TikTok to finalize its divestment, but that move could be opposed by lawmakers and other stakeholders who want closure.
Senators Call for Cooperation on TikTok Matter
On March 24, three Democratic senators penned a letter to President Trump requesting him to work with Congress on the potential remedies for the ownership problem of TikTok. Senators Edward J. Markey of Massachusetts, Chris Van Hollen of Maryland, and Cory A. Booker of New Jersey signed the letter and noted the threat that companies continue to pose by hosting TikTok and possible exposure to the law.
The senators suggested that subsequent deadline extensions would require leading companies like Google and Apple to continue operating in a legally uncertain environment. They also called on Trump to work with Republican senators to pass the “Extend the TikTok Deadline Act,” which would extend the divestment deadline to October 16, 2025. The bill has found favor among some lawmakers who view the April deadline as too soon for an agreement to be reached.
Who Wants to Buy TikTok?
Several well-known brands and companies have expressed interest in buying TikTok or making investments in its future. Some of the groups that have been looking at buying TikTok include a broad spectrum of possible buyers:
- Project Liberty: Led by onetime Los Angeles Dodgers owner Frank McCourt, the effort is to create new internet infrastructure. McCourt’s group bid back this year, backed by “Shark Tank” investor Kevin O’Leary and Reddit co-founder Alexis Ohanian.
- MrBeast’s Consortium: Online fame James “MrBeast” Donaldson is part of a consortium of investors led by Employer.com founder Jesse Tinsley. The group also offered to buy TikTok earlier this year.
- Perplexity AI: A US search engine company, Perplexity AI offered to buy out a merger with TikTok in January 2025. Under the proposal, the two companies would merge into a new company.
- Bobby Kotick, Doug McMillon, and Others: There are some other people, including Bobby Kotick, former Activision CEO, and Walmart CEO Doug McMillon, who have expressed interest in buying TikTok. However, none of these people or organizations have as yet made any formal offers.
- Microsoft and Rumble: Microsoft, who previously tried to acquire TikTok in 2020, has joined the race again. Conservative video streaming platform Rumble has also shown interest in acquiring the app.
The Path Forward for TikTok
Time’s up with only days to go until April 5th, the divestment deadline for TikTok. Having found significant interest among various potential bidders, it appears that now TikTok’s future in America depends on closing a sale of a kind which will satisfy not only the economic interests of ByteDance and the national security interests of the U.S. government.
As negotiations continue, the role of China’s government in whatever is to be agreed upon continues to be a concern. The Biden administration has signaled that it will have close monitoring of the divestment process to ensure that TikTok’s U.S. operations are no longer under the influence of Beijing.
The outcome of these negotiations would set a precedent for future United States foreign policy toward Chinese technology companies, particularly as tensions between the two nations continue to rise. In the meantime, the attention of lawmakers and the tech community is now focused on reaching an agreement before the impending April 5 deadline.
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Reported by GistNexus Team and Edited by Mr. Chibueze Onwuka