For the past four years, TikTok has found itself embroiled in heated debates within the United States, as concerns swirl around potential data access by the Chinese government, given its ownership by ByteDance. Recent events have only added to the intrigue when the app unexpectedly went offline in the U.S., causing millions of users to temporarily lose access until it was swiftly reinstated.
Even though TikTok has recently returned to both the App Store and Google Play Store, its future is still up in the air. There’s a palpable buzz in the investment world as various parties jostle to potentially acquire the app. Reports estimate that TikTok’s U.S. operations could be valued at an astonishing $60 billion according to CFRA Research.
The story begins in August 2020 when then-President Trump issued an executive order targeting ByteDance. This kicked off a series of dramatic events, including efforts to compel a sale of TikTok’s American operations. Companies like Microsoft and Oracle were among those reportedly vying for ownership. Nevertheless, legal maneuvers temporarily blocked these moves, keeping TikTok available to its massive user base during the turbulence.
Fast forward to the Biden administration, and the U.S. House of Representatives overwhelmingly passed legislation against TikTok. President Biden then formalized the legislative action by signing a bill demanding either a sale of the app or its ban, leading TikTok to challenge the government in court over constitutional concerns.
In a surprising turn, by the end of 2024, Trump pivoted from his previous stance, suggesting that a way could be found to allow TikTok to remain accessible in the U.S. Despite the enactment of the Protecting Americans from Foreign Adversary Controlled Applications Act, widely dubbed “the TikTok ban,” the app briefly went dark before a sudden resurrection, attributed to efforts championed by Trump.
Currently, TikTok operates under a stay of execution, granted by Trump via an executive order that postponed its ban by 75 days to strike a possible deal. The overarching ambition here is to create an equal ownership split between ByteDance and an American entity.
Speculation abounds as to which parties might end up owning TikTok’s U.S. wing. Frank McCourt, ex-owner of the Los Angeles Dodgers, is spearheading The People’s Bid for TikTok, aiming for a privacy-centered, open-source model. High-profile supporters of this bid include Kevin O’Leary, Tim Berners-Lee, and David Clark.
Meanwhile, American Investor Consortium, led by Jesse Tinsley, has made headlines with a $30 billion all-cash proposal. Another consortium, featuring notable names like David Baszucki and Nathan McCauley, is participating.
Additional interest simmers from former Activision CEO Bobby Kotick and ex-Treasury Secretary Steven Mnuchin, amongst others. Tech giants such as Oracle, Walmart, and Microsoft have reemerged as contenders, further heating the race. Even Rumble, a YouTube alternative, and Perplexity AI, a cutting-edge search engine startup, have thrown their hats into the ring.
As negotiations continue, all eyes remain on the unfolding saga of whether TikTok will remain in its current form or transform under new ownership.
