President Donald Trump recently announced that his administration is in talks with four different groups regarding the sale of TikTok, the popular short-form video app owned by Chinese company ByteDance. This move comes in response to national security concerns that have led the U.S. government to demand the divestment of TikTok from the country.
On January 19, 2025, a law was enacted requiring ByteDance to divest its U.S. operations or face a complete ban on the app. Upon assuming his second term on January 20, President Trump issued an executive order granting TikTok a 75-day grace period, until April 5, to comply with this requirement.
Potential buyers include investment firms such as Susquehanna International Group, General Atlantic, Kohlberg Kravis Roberts, and Sequoia Capital. Also notable is an alliance that includes entrepreneur Frank McCourt, investor Kevin O’Leary, and Reddit co-founder Alexis Ohanian. President Trump has hinted that the U.S. government could acquire a 50% stake in TikTok U.S., although details of how this stake would be structured have not been specified.
A crucial aspect of the negotiations is the inclusion of TikTok’s algorithm, which is critical to its operation and success. The company’s valuation could range from $50 billion to $100 billion, depending on whether the algorithm is part of the deal. Furthermore, the direct involvement of the White House in the negotiations is unusual, with Vice President J.D. Vance overseeing the auction, adding complexity to the process.
TikTok’s current status in the United States is uncertain. If ByteDance doesn’t finalize the sale by April 5, the app could face a ban in the country. Meanwhile, negotiations continue, and the TikTok user community anxiously awaits a resolution that would allow the platform to continue operating in the United States.