TikTok’s Future in the U.S.: Potential Sale Amid Regulatory Pressure

Background: TikTok’s Regulatory Challenges in the U.S.

TikTok, the popular social media app owned by Chinese company ByteDance, has faced significant scrutiny in the United States for over four years due to concerns about potential access to user data by the Chinese government. This has led to legal battles, legislative actions, and executive orders aimed at restricting or banning the app’s operations on U.S. soil.

In August 2020, the Trump administration issued an executive order to ban transactions with ByteDance, followed by efforts to compel a sale of TikTok’s U.S. business to an American company. However, judicial intervention temporarily blocked the ban, allowing TikTok to continue operating during ongoing court proceedings.

Legislative and Executive Developments

Following the transition to the Biden administration, Congress passed legislation mandating TikTok’s sale or ban, with President Joe Biden signing the bill into law in 2024. TikTok challenged the ban in court, citing First Amendment rights and asserting compliance with U.S. data storage regulations.

In a notable shift, former President Trump filed a court brief opposing the ban in late 2024 and subsequently extended the deadline for TikTok’s sale multiple times. The U.S. Supreme Court upheld the legislation known as the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) in early 2025, which briefly led TikTok to shut down operations in the U.S. before resuming service within hours.

Current Status and Potential Sale

As of early 2025, a reported “framework” deal between the U.S. and China has emerged, involving a consortium of investors including Oracle, Silver Lake, and Andreessen Horowitz to oversee TikTok’s U.S. operations. ByteDance is expected to retain a minority stake, with U.S. investors holding significant ownership.

CFRA Research estimates TikTok’s U.S. business could be valued at upwards of $60 billion if a sale materializes. However, no definitive agreement has been finalized, and negotiations continue amid evolving regulatory and geopolitical dynamics.

Investor Groups Seeking TikTok’s U.S. Operations

The People’s Bid

Led by Frank McCourt, founder of Project Liberty and former owner of the Los Angeles Dodgers, The People’s Bid emphasizes privacy and open-source governance. The consortium includes notable figures such as Reddit co-founder Alexis Ohanian, investor Kevin O’Leary, World Wide Web inventor Tim Berners-Lee, and MIT researcher David Clark.

American Investor Consortium

Jesse Tinsley, CEO of Employer.com, heads a separate group proposing a $30 billion all-cash offer. Participants reportedly include Roblox co-founder David Baszucki, Anchorage Digital CEO Nathan McCauley, and YouTube creator Jimmy Donaldson (MrBeast).

Other Interested Parties

• Amazon has recently expressed interest in acquiring TikTok.
• AppLovin, backed by casino developer Steve Wynn, has submitted a bid.
• Bobby Kotick, former Activision CEO, is reportedly considering a purchase.
• Microsoft has reentered the bidding process after prior interest.
• Oracle remains a top contender and potential cloud technology partner.
• Emerging bidders include AI startup Perplexity AI and YouTube alternative Rumble.
• Former Treasury Secretary Steven Mnuchin has reengaged in acquisition talks.
• Retail giant Walmart is exploring TikTok to expand e-commerce influence.
• Social media startup Zoop, co-founded by OnlyFans founder Tim Stokely, has proposed a late-stage bid.

Outlook

While the exact outcome remains uncertain, ongoing negotiations, regulatory scrutiny, and investor interest suggest a significant restructuring of TikTok’s U.S. operations could be imminent. The resolution will have implications for data privacy, national security, and the future of social media in America.