The Supreme Court has upheld the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), a landmark decision that directly impacts TikTok's operations in the United States. This decision mandates ByteDance, the Chinese company behind TikTok, to divest from the popular social media platform. With a Sunday deadline fast approaching, ByteDance has yet to announce any potential deals for divestment.
President Trump previously signed an executive order extending the deadline by 75 days, aiming to provide his administration with more time to establish a comprehensive strategy. However, the delay poses significant challenges in facilitating a ByteDance divestment, despite recent signals from Beijing indicating a willingness to consider U.S. ownership of TikTok.
Canadian investor Kevin O'Leary has expressed continued interest in acquiring TikTok, although current legal constraints make such a deal impractical. Last March, O'Leary valued TikTok at $20-$30 billion, a figure significantly below its perceived market worth. Importantly, any prospective deal under President Trump's administration excluded ByteDance's proprietary TikTok algorithm—a focal point of scrutiny among U.S. lawmakers.
"I would love to do a deal, if the law provided for it, but I don't have the luxury of breaching the order of the Congress," – Kevin O'Leary
O'Leary's group proposed an alternative algorithm for TikTok, which they believe could address national security concerns while keeping the platform operational. Service providers like Oracle and Akamai have continued to support TikTok's online presence; however, Apple and Google have yet to reinstate ByteDance-owned apps on their platforms.
"Project Liberty has a proven tech stack that is already in use and offers a clear path to address the national security concerns of Congress while keeping TikTok operational," – Frank McCourt
The Supreme Court's ruling emphasized that Congress had meticulously integrated specific dates and procedures within PAFACA, determining it to be constitutional. Legal experts caution that the executive order's status remains uncertain and that future attempts at negotiating a TikTok deal will likely encounter legal obstacles.
"The Order does not appear to comply with the statute. Congress carefully included certain dates and procedures in the law, which SCOTUS found to be constitutional," – Carl Tobias
"Thus, a federal court could find that the Order violates the law and invalidate it," – Carl Tobias
President Trump had previously considered Elon Musk and Larry Ellison as potential buyers for TikTok. Despite facing significant hurdles, Kevin O'Leary continues to collaborate with U.S. lawmakers on a potential acquisition strategy. The proposed deal would grant U.S. stakeholders a 50% share in TikTok, an idea once floated by Trump.
"That 50/50 deal, I would love to work with Trump on, so would every other potential buyer… But the problem with some of these ideas is they are inconsistent with the ruling of the Supreme Court," – Kevin O'Leary
Beijing's recent openness to a U.S.-based transaction marks a shift in its stance regarding foreign ownership of TikTok. Yet, the potential implementation of tariffs on China by President Trump remains a looming threat should Beijing fail to endorse such an agreement.
"When it comes to actions such as the operation and acquisition of businesses, we believe they should be independently decided by companies in accordance with market principles," – Beijing spokesperson