Miami: TikTok is just hours away from a critical deadline to find a new, non-Chinese owner or face a potential ban in the United States.

The widely popular video-sharing platform, with over 170 million American users, is under threat due to a law passed last year that mandates TikTok to separate from its Chinese parent company, ByteDance, or be shut down in the US.

Trump confirms progress on deal

US President Donald Trump stated on Thursday that his administration is "very close" to finalising a deal for TikTok's sale. He mentioned that the agreement involves "multiple" investors but did not disclose further details.

Concerns over national security and the belief among US officials that TikTok is controlled by the Chinese government have driven this move. The law came into effect on 19 January, just a day before Trump’s inauguration.

Temporary shutdown and extension

Hours before the initial deadline, TikTok temporarily ceased operations in the US and disappeared from app stores, causing disappointment among millions of users. However, Trump quickly granted a 75-day extension, allowing TikTok to resume services and return to Apple and Google app stores in February.

This extension is set to expire at midnight (0400 GMT) on 5 April. Despite this, Trump has downplayed concerns, expressing confidence that a buyer will be found in time.

TikTok as a bargaining chip in US-China relations?

The president suggested that TikTok could be included in broader trade negotiations with China, potentially influencing the tariffs imposed on Beijing.

"As long as they are giving us something that is good. For instance, with TikTok," Trump said.

He added, "We have a situation with TikTok where China will probably say we’ll approve a deal, but will you do something on the tariffs? The tariffs give us great power to negotiate."

Possible solutions and key players

According to reports, one likely outcome involves US investors in ByteDance transferring their stakes into a new independent TikTok entity. Additional American investors, including Oracle and private equity firm Blackstone, may also join in to reduce ByteDance’s ownership share.

Oracle already manages much of TikTok’s US data, and its chairman, Larry Ellison, is a known Trump supporter.

However, uncertainty remains over the fate of TikTok’s algorithm. Forrester Principal Analyst Kelsey Chickering likened the algorithm to "Harry Potter without his wand," suggesting that losing it would significantly weaken TikTok’s appeal.

The New York Times reported that the new company may license the algorithm from ByteDance, though such an arrangement could contradict the law’s intent, which is based on concerns that China could use the algorithm for strategic purposes.

Amazon has reportedly placed a last-minute bid for TikTok. Other proposals include The People's Bid for TikTok, a project led by real estate and sports tycoon Frank McCourt’s Project Liberty initiative.

Additionally, artificial intelligence startup Perplexity has expressed interest, alongside a joint venture involving YouTube star MrBeast. Even adult content platform OnlyFans has been linked to a bid for TikTok.

Political and financial influences

Although Trump supported a TikTok ban during his first term, he has recently changed his stance, believing that the platform has helped him gain support among younger voters ahead of the upcoming election.

Furthermore, billionaire Jeff Yass, one of Trump’s major political donors, holds a significant stake in ByteDance, adding another layer of complexity to the situation.

AFP