What Future Awaits TikTok? An Analysis of Possible Buyers.
TikTok has resumed its operations for now, but the future of the app remains uncertain as Donald Trump pushes for a "deal."
The situation of TikTok in the United States remains uncertain despite the app having resumed its operations. The executive order from President Donald Trump, which postponed the potential imposition of a ban, has only provided temporary relief for the platform. Although ByteDance, TikTok's parent company, previously showed resistance to selling its U.S. operations, it has changed its stance since Trump took office. An investor from ByteDance indicated that reaching a deal to keep TikTok in the country would be beneficial for all parties involved. Additionally, Chinese authorities have expressed openness to a potential agreement.
Various individuals and companies have shown interest in TikTok. Trump has expressed his desire to see a "bidding war" for the app and suggested that the U.S. government should have a stake in the company. However, it is still unclear how a potential deal could be structured. Trump's order gave the company a 75-day deadline to finalize an agreement.
Oracle: Reports indicate that Oracle is collaborating with officials from Trump’s administration to create a plan to save TikTok. This project would involve Oracle and a group of external investors taking control of the app's global operations, while ByteDance would retain a minority stake. Larry Ellison, a friend of Trump and CEO of Oracle, has been involved in previous negotiations, but the current status of their agreement remains uncertain.
Microsoft: Microsoft has also shown interest in participating in TikTok’s future. Trump confirmed that the company is in talks to acquire TikTok, an intention that dates back to previous attempts by the company to acquire the platform in 2020, which did not materialize.
Perplexity AI: Just before TikTok was briefly disconnected, Perplexity AI proposed an offer to create a new entity that would combine Perplexity, TikTok U.S., and New Capital Partners. Their proposal has evolved, now suggesting that the U.S. government could own up to half of this new structure.
MrBeast: Popular YouTuber MrBeast, known as Jimmy Donaldson, joked about acquiring TikTok before the initial ban. It has been reported that several billionaires have contacted him to make a serious offer, totaling over $20 billion in proposals, although it is unclear how viable his offer is.
Project Liberty: A group of investors known as Project Liberty, led by Frank McCourt and including Kevin O'Leary from Shark Tank, has also expressed their intention to acquire TikTok. However, their current situation is uncertain as their offer was made before the ban.
The future of TikTok, surrounded by multiple proposals and negotiations, remains in a state of limbo. The app is not available in the Apple and Google stores and could face another potential shutdown if an agreement is not reached. Currently, both the U.S. government and ByteDance seem more willing to engage in dialogue, which may bring changes in the coming weeks.
