TikTok’s Uncertain Future in the U.S.: Ban, Legal Battles & Potential Buyers

TikTok, the popular social media platform owned by Chinese company ByteDance, has faced ongoing scrutiny in the United States over concerns about user data potentially being accessed by the Chinese government. Earlier this year, the app experienced a temporary outage in the U.S., leaving millions of users in suspense before it was quickly restored.​

Despite its return to the App Store and Google Play Store in February, It’s future in the U.S. remains uncertain, with a potential ban looming on April 5. Numerous investors are vying for the opportunity to acquire the app, with its U.S. operations estimated to be valued at over $60 billion, according to Angelo Zino, senior vice president at CFRA Research.​

TikTok Ban: A Timeline of Events

The controversy began in August 2020 when then-President Donald Trump signed an executive order banning transactions with ByteDance. The following month, the administration sought to compel the sale of It’s U.S. operations to an American company, with Microsoft, Oracle, and Walmart emerging as leading contenders. However, a U.S. judge temporarily blocked the executive order, allowing it to continue operations during ongoing legal battles.​

Progress continued under the Biden administration. In April 2024, the U.S. House of Representatives passed legislation against TikTok with a 360-58 vote, followed by Senate approval on April 23, 2024. President Joe Biden subsequently signed the bill, mandating that it be sold or face a ban. In response, It sued the U.S. government, challenging the constitutionality of the ban and asserting that the app and its American users’ First Amendment rights were being violated. The company has consistently denied posing a security threat, maintaining that its U.S.-stored data complies with all local laws.​

For more insights on political shifts and corporate leadership moves, see Elon Musk Resigns from White House Role Amid Tesla’s Market Struggles.

Trump’s Shift in Stance

On December 27, 2024, former President Trump opposed the potential it’s ban in a court filing, expressing a desire to find a way to keep the app operational in the U.S. This marked a significant shift from his earlier position and introduced new developments for TikTok’s future.​

In January 2025, the U.S. Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), commonly referred to as “the TikTok ban.” TikTok announced that it would likely cease operations in the U.S. on January 19.​

Temporary Shutdown and Resumption

TikTok did shut down in the U.S. when the act took effect but resumed operations less than 12 hours later. The platform attributed its return to President Trump’s efforts, stating, “As a result of President Trump’s efforts, TikTok is back in the U.S.”​

Current Status and Potential Buyers

On January 20, 2025, Trump signed an executive order postponing the TikTok ban for 75 days, providing additional time for the app to either sell a stake in the platform or reach an agreement with the U.S. government. His goal is to achieve a 50-50 ownership arrangement between ByteDance and a U.S. company. As of now, no definitive deal has been reached, but developments are expected soon.​

Several investor groups and companies have expressed interest in acquiring TikTok’s U.S. operations:

The People’s Bid for TikTok

This consortium, organized by Project Liberty founder Frank McCourt (former owner of the Los Angeles Dodgers), aims to prioritize privacy and data control through an open-source approach. Investment firm Guggenheim Securities and law firm Kirkland & Ellis are assisting with the bid. Notable supporters include:​

• Kevin O’Leary: Investor and television personality who previously expressed willingness to buy TikTok for $20 billion.
• Tim Berners-Lee: Inventor of the World Wide Web, supporting the proposal for user data control.​
• David Clark: Senior research scientist at MIT’s Computer Science and Artificial Intelligence Laboratory.​

American Investor Consortium

Led by Jesse Tinsley, CEO and founder of Employer.com, this group announced a $30 billion all-cash offer for TikTok’s U.S. operations. Participants include:

• David Baszucki: Co-founder and CEO of Roblox.​
• Nathan McCauley: Co-founder and CEO of crypto platform Anchorage Digital.​

Other Interested Parties

• Bobby Kotick: Former CEO of Activision, reportedly interested in integrating gaming and social media.​
• Steven Mnuchin: Former U.S. Treasury Secretary, reengaged in discussions about purchasing TikTok.​
• Oracle: Previously bid for TikTok in 2020; co-founder Larry Ellison indicated interest in 50% ownership.​
• Walmart: Aiming to enhance e-commerce reach through TikTok’s influence on consumer behavior; first expressed interest in 2020.​
• Microsoft: Reentered bidding discussions to acquire TikTok.​
• Rumble: YouTube alternative seeking to acquire TikTok and serve as its cloud technology partner.​
• Perplexity AI: AI search engine startup that submitted a bid last month.

As the April 5 deadline approaches, the future of TikTok in the U.S. hangs in the balance, with multiple stakeholders and potential buyers closely monitoring developments.