Wider implications TikTok will continue to function in the United States for at least another three months. At the same time, President Donald Trump is preparing to grant for the third time this year an extension for a possible sale—or ban. This decision comes amidst ongoing negotiations with ByteDance, TikTok’s Chinese parent company. These debates increasingly pivot on who should run the platform’s day-to-day operations here in the U.S.
In April, the Trump administration trumpeted the news that U.S.-China trade negotiations were on the fast track. Their goal was to find a settlement that would place TikTok’s U.S. operations—somewhat obscurely controlled by majority ownership—under American private ownership. ByteDance ultimately failed to meet the January deadline to divest the platform. This failure was the catalyst for the first steps towards a ban. The extension of this deadline is yet another example of the administration’s tumultuous love-hate relationship with the TikTok platform, beloved by many younger Americans.
Since then, President Trump has indicated that he would be open to a sale of TikTok to Oracle, a California-based cloud computing giant. In the tech world, one of Oracle’s co-founders, Larry Ellison, is widely known as a long-time supporter and ally of Trump. Things are still quite up in the air. In a recent interview with the BBC, Trump said he would “probably” extend the TikTok deadline, highlighting that any deal must be approved by China.
“I think we’ll get it. I think President Xi will ultimately approve it.” – Donald Trump
Welcoming these changes are, the extension has faced backlash from Congress, which previously passed a sale-or-ban resolution last year. The proposed sale would still be subject to Chinese law, making such an agreement even more difficult.
Most recently, TikTok briefly went dark for several hours over the weekend leading up to Trump’s inauguration, stoking speculation about its impending doom. Kelsey Chickering, a social media analyst, remarked on the current landscape, stating, “What ban? There is nothing ‘looming’ about the potential TikTok ban anymore.” She noted that competitors such as Snap will potentially seek to take gain market share in this “unstable time.” For reasons explained below, she thinks they will fail.
MrBeast, aka Jimmy Donaldson, would be excited to seize the opportunity to buy TikTok with investor group. Here’s why #TikTokBuyout. This action scene highlights the fierce battle being fought over the long-term future of the platform.
ByteDance has continued to publicly emphasize its ongoing commitment to addressing remaining issues of concern in relation to any sale. As one spokesperson acknowledged, “There are still some fundamental issues to work out,” telling stakeholders just how complicated the process is going to be. They noted that “any agreement will be subject to approval under Chinese law.”
Karoline Leavitt confirmed that President Trump intends to sign an additional Executive Order to ensure TikTok remains operational during this transitional period. Negotiations continue in an effort to bring all sides together again. What’s evident too is that TikTok’s future in the U.S. is contingent on domestic as well as international political factors.