TikTok faces a potential ban in the U.S. unless a buyer steps in before Congress’ deadline on Sunday. In April, Congress mandated that the popular video-sharing app must divest its U.S. assets under the ownership of ByteDance, its Chinese parent company, citing national security worries. The U.S. Supreme Court upheld this law unanimously on Friday. President Joe Biden opted not to enforce the ban, deferring the decision to President-elect Donald Trump, whose inauguration is scheduled for Monday.
Despite previous attempts to ban TikTok, Trump has expressed a change of heart due to support from younger voters during his 2024 campaign. He has pledged to “save” the app, though his specific plan remains unclear. Trump mentioned on Truth Social that his decision would come soon but required time for review. The incoming president indicated to NBC News that he anticipates implementing a 90-day reprieve upon taking office.
Amid concerns of TikTok’s potential demise, there is optimism from potential buyers about a merger with a U.S. search engine. Perplexity AI, a U.S. tech company, has proposed a merger with TikTok U.S. to ByteDance, aiming to create a new entity while allowing current ByteDance investors to retain their stakes.
TikTok is owned by ByteDance, a Beijing-based company founded by Chinese entrepreneurs. The app’s global headquarters are in Los Angeles and Singapore, distinguishing it from China-based operations.
The decision to ban TikTok is rooted in worries about the influence of the Chinese government over the company, with concerns raised about potential content control.
Is MrBeast acquiring TikTok?
YouTube personality MrBeast, also known as James “Jimmy” Donaldson, recently sparked speculation with a post stating, “Okay fine, I’ll buy Tik Tok so it doesn’t get banned.” MrBeast, who Forbes claims earns $84 million annually, hinted at potential interest from billionaires, expressing a desire to explore the possibility. Meanwhile, McCourt’s Project Liberty initiative has made a bid for Bytedance, although specific details remain undisclosed.
Potential buyers for TikTok include notable figures such as Musk, MrBeast, Kevin O’Leary, and Frank McCourt’s Project Liberty, as well as others like Bobby Kotick, Walmart CEO Doug McMillon, and technology giants Microsoft and Rumble. While Musk has voiced support for TikTok in the past, no concrete plans have been announced. McMillon and Walmart, along with Microsoft, have previously engaged in discussions regarding TikTok acquisition efforts.
As speculation continues to swirl, it remains unclear who will ultimately secure ownership of TikTok.
The injunction against President Trump’s proposed ban on TikTok has effectively put a stop to his plans and led to the eventual dissolution of the deal. Following this development, in 2023, Doug McMillon, the CEO of Walmart, welcomed the founder of ByteDance to Bentonville, Arkansas, as reported by sources close to the matter in The New York Post.
Contributors to this article include Mike Snider, Greta Cross, Clare Mulroy, Maureen Groppe, and Rebecca Morin from USA TODAY.
This update on the TikTok ban discusses the potential buyers, a merger bid, and the possibility of an extension.
