The popular social media platform, with over 170 million American users, has been at the center of a political and business battle for quite some time now.
Initially, it was set to be banned on January 19, but after President Donald Trump granted a 75-day extension on the law prohibiting TikTok, ByteDance—the Chinese company that owns it—must now find a buyer in the U.S. Otherwise, TikTok risks a complete ban in its largest market outside of China.
So, let’s take a look at the possible scenarios for TikTok’s future in the U.S.!
THE FUTURE OF TIKTOK
First things first: Why would anyone want to buy TikTok?
Aside from the obvious—needing an American company to take over—TikTok isn’t just an app for posting videos. It’s a goldmine of data and advertising revenue. And when we say goldmine, we’re talking about a valuation that could reach $50 billion. All thanks to its algorithm, which is essentially its secret sauce.
So, whoever buys TikTok isn’t just acquiring a social media platform; they’re gaining access to a massive user base and a chance to dominate one of the fastest-growing markets in the world.
Alright, so who wants to buy it? Now, this is where things get interesting. Let’s break down the key players in the game.
Oracle
Oracle is currently in the lead, negotiating with ByteDance to gain control over data, the algorithm, and software updates. Essentially, Oracle wants to be the "watchdog" overseeing TikTok in the U.S. This is a serious proposal, showing just how crucial data security is in this debate—something Trump himself has publicly supported.Microsoft
Microsoft , which previously attempted to buy TikTok in 2020 (alongside Walmart), is back in the race. Wait, why Microsoft again? What’s their angle? Simple: it’s one of the few companies with the infrastructure to handle something as big as TikTok. Plus, acquiring TikTok would give Microsoft a stronger foothold in social media, helping it compete against Meta and Google .Perplexity AI
Now, this is the wild card. Perplexity AI, an AI-focused startup, has proposed the creation of a new company, NewCo.
This new entity would function as a holding company, partially owned by ByteDance and Perplexity, but with the U.S. government potentially taking up to 50%. In other words, it’s a compromise solution attempting to satisfy both sides.
Wait, weren’t some celebrities interested in buying it too? And yes, this is where things get even more entertaining.
At first, we had MrBeast. The popular YouTuber and third most-followed TikToker made a joke about buying the platform. But to everyone’s surprise, he was serious! He even started forming an investor group to make an official bid.
Then there’s Kevin O’Leary (from Shark Tank) and billionaire Frank McCourt, who formed the group "The People's Bid for TikTok." They’ve reportedly put together a $20 billion offer. And guess who’s backing them? None other than Tim Berners-Lee, the creator of the World Wide Web.
And, of course, Elon Musk had to get thrown into the mix. Though there’s nothing official yet, rumors suggest he’s considering making a bid for TikTok as well. Because, well… it’s Elon.
And What’s Trump’s Stance on All This?
Now, here’s another twist. Despite his initial battle with ByteDance, Trump doesn’t actually want TikTok to disappear from America. Instead, he’s pushing for a solution, even saying he likes bidding wars because he believes they could lead to a deal that benefits the U.S. In his own words, "Who knows? Maybe the American government gets a piece of the pie too."
So, What’s Next?
Right now, chaos is the best word to describe the situation. But there are three possible outcomes:
TikTok gets sold to American investors.
The law gets delayed again, or even canceled.
TikTok leaves the U.S. entirely (which nobody wants—not the users, not the investors).
One thing’s for sure—this story is far from over.
Posted Using INLEO