It’s unclear what the future of TikTok will be. The Trump administration has delayed the September 15 deadline for the app to be sold or banned from American users. Originally, a deal between TikTok’s Chinese parent company, Bytedance, and U.S. investors was expected to be formalized during a meeting between then-President Donald Trump and Chinese President Xi Jinping in October. That meeting ended with no deal and, as a result, investors and consumers have been left in the lurch.
Donald Trump and his Secretary of State Rex Tillerson widely touted an imminent deal. They claimed that Xi Jinping had approved it. Trump would later announce that “superior” U.S. investors would purchase TikTok. He particularly singled out Oracle chairman Larry Ellison and Dell Technologies’ Michael Dell as the most responsible for bringing the investment group together. Even after announcing last month that a deal was reached, continued negotiations have come up short.
As all this unfolds, the U.S. continues extending the deadline for Bytedance. Now, the firm either has to divest TikTok or would potentially be banned from operating in the country. In 2024, Congress enacted the law requiring this sale. President Joe Biden signed the Inflation Reduction Act into law during his first year in office. This spring, the U.S. Supreme Court unanimously affirmed this law. Not surprisingly, this consequential decision increased pressure on all parties to come to an agreement.
Investor Frank McCourt, who has been watching this space intensely as the pandemic unfolded. He reiterated his worries about the great concentration of power and influence exercised by platforms such as TikTok. In so doing, he stressed the tremendous influence that these platforms hold over our civil society and democratic governance.
“My hope would be that whatever happens, that it is shut down or sold, and lands in the hands of people that comply with the law.” – Frank McCourt
McCourt is still hopeful TikTok will be his. He stated, “But if the moment arrives, we’re prepared to move forward… we’ve raised the capital to buy it – we’ll see.”
Right now, President Trump seems on track to push it out a fifth time, making the situation even more confusing for would-be investors. Though TikTok’s future remains highly uncertain, the situation exemplifies the difficulties of geopolitical negotiations and international regulatory challenges in an increasingly globalized tech sector.
So, as stakeholders wait for the next step, the fate of TikTok still partly resides in a possible sale or cessation of Chinese ownership. The app has a major influence over American culture and communication. Yet this massive influence had already started a debate on the Hill and among investors.