TikTok made its return to the App Store and Google Play Store last month.
However, the app's future remains uncertain, with several investors vying for the chance to acquire it. CFRA Research's senior vice president, Angelo Zino, estimates that TikTok’s U.S. business could be valued at over $60 billion.
TikTok Ban: What’s Happened So Far
To fully grasp the high-stakes situation, let's review the timeline of TikTok's contentious relationship with the U.S. government, which has led to multiple legal battles and negotiations.
The saga began in August 2020 when former President Trump signed an executive order to ban transactions with TikTok’s parent company, ByteDance.
A month later, Trump's administration attempted to force a sale of TikTok’s U.S. operations to a U.S.-based company, with Microsoft, Oracle, and Walmart among the leading contenders. However, a U.S. judge temporarily blocked Trump’s executive order, allowing TikTok to continue operating as the legal proceedings played out.
The situation gained further momentum last year under the Biden administration. The U.S. House of Representatives passed legislation against TikTok with a large majority vote of 360-58. The Senate followed suit, passing the bill on April 23, 2024.
Soon after, President Joe Biden signed a bill mandating that TikTok be sold or banned. In response, TikTok filed a lawsuit against the U.S. government, arguing that the ban was unconstitutional and violated the First Amendment rights of the app and its American users. The company has repeatedly denied any security threats, maintaining that its data stored in the U.S. adheres to all local laws.
On December 27, 2024, Trump filed a court document opposing the potential TikTok ban, asserting that he could find a way to keep the app operating in the U.S. This marked a significant departure from his stance during his first presidency and was an unexpected twist for TikTok.
In January, the U.S. Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), also known as "the TikTok ban." Following this, TikTok officially announced that it would likely be forced to shut down on January 19.
TikTok Shuts Down... Then Comes Back Online
Although TikTok temporarily shut down in the U.S. when the act was enforced, the closure didn’t last long. The app was back online within 12 hours, with the platform stating, "Thanks to President Trump’s efforts, TikTok is back in the U.S."
Where We Are Today
On January 20, Trump signed an executive order that delayed the TikTok ban for 75 days. This extension gives the app more time to either sell a stake in the platform or reach an agreement with Trump. His aim is to create a 50-50 ownership split between ByteDance and a U.S. company.
No final deal has been made regarding the sale of TikTok’s U.S. operations, but an announcement could come soon.
Below is a list of investor groups and companies speculated to be interested in buying TikTok’s U.S. business. (Interestingly, Elon Musk is not among the potential buyers.)
The People’s Bid for TikTok
The People’s Bid for TikTok is a consortium led by Frank McCourt, founder of Project Liberty and former owner of the Los Angeles Dodgers. The investment firm Guggenheim Securities and law firm Kirkland & Ellis are assisting with the bid. The main goal of The People’s Bid is to acquire TikTok while prioritizing privacy and data control, adopting an open-source approach.
Key supporters involved include:
- Alexis Ohanian: The co-founder of Reddit has recently joined The People’s Bid as a strategic advisor.
- Kevin O’Leary: A prominent investor and TV personality, O’Leary previously stated on Fox that he was willing to purchase TikTok for $20 billion. He joined the bid on January 6.
- Tim Berners-Lee: The inventor of the World Wide Web backs the proposal, emphasizing that "users should have the ability to control their own data," as he stated in a release.
- David Clark: A senior research scientist at MIT’s Computer Science and Artificial Intelligence Laboratory, Clark is also part of the group.
American Investor Consortium
Jesse Tinsley, CEO and founder of Employer.com, is heading a group of American investors. Last month, Tinsley revealed a $30 billion all-cash offer to acquire TikTok’s U.S. operations.Key participants in the consortium include:
- David Baszucki: The co-founder and CEO of Roblox is involved, according to Tinsley’s statements to Bloomberg.
- Nathan McCauley: The co-founder and CEO of crypto platform Anchorage Digital is confirmed as part of the consortium, as reported by Bloomberg.
- Jimmy Donaldson (MrBeast): The famous YouTube creator is also said to be a member of the investor group.
Other Interested Parties
- Bobby Kotick: The former CEO of Activision is reportedly interested in acquiring TikTok. His background in managing a major gaming company suggests he might be interested in merging gaming with social media on the platform.
- Steven Mnuchin: The former U.S. Treasury Secretary under President Trump has rejoined discussions about potentially purchasing TikTok.
- Oracle: The company previously attempted to acquire TikTok in 2020. Last month, Oracle co-founder Larry Ellison told Trump outside the White House that 50% ownership "seemed like a good deal."
- Walmart: The retail giant may be considering TikTok to boost its e-commerce presence, particularly given the platform's impact on consumer shopping trends. Walmart first showed interest in 2020.
- Microsoft: The tech giant, which has previously expressed interest in acquiring TikTok, has been mentioned by Trump as reentering the bidding process.
- Rumble: The YouTube alternative announced on X that it plans to acquire TikTok and partner with it for cloud technology services.
- Perplexity AI: The AI search engine startup reportedly submitted a bid last month, according to CNBC.