What to know about TikTok’s uncertain future in the US and the people who want to buy it

The popular social media platform TikTok, owned by ByteDance, has found itself at the center of a heated debate in the United States for the past four years. Concerns regarding user data potentially falling into the hands of the Chinese government have fueled scrutiny of the app. Earlier this year, TikTok faced a temporary outage that left millions of users anxious, but the service was swiftly restored. In February, the app was reinstated on both the App Store and Google Play Store. With the stakes rising, a number of investors are now in competition to acquire TikTok. If a sale goes through, estimates from CFRA Research's senior vice president, Angelo Zino, suggest that the platform's U.S. business could be valued at over $60 billion. Recent developments indicate that progress has been made in negotiations, especially as former President Trump extended the ban deadline on TikTok for the fourth time. Reports suggest a framework deal has emerged, with a consortium of investors, including Oracle, Silver Lake, and Andreessen Horowitz, possibly taking charge of TikTok's U.S. operations. To grasp the complexities of this situation, it's essential to revisit TikTok's turbulent history with the U.S. government. The saga began in August 2020 when Trump signed an executive order aimed at banning transactions with ByteDance. The following month, his administration attempted to force a sale of TikTok's U.S. operations to an American company, with Microsoft, Oracle, and Walmart emerging as leading candidates. However, a U.S. judge intervened, temporarily blocking the executive order and allowing TikTok to continue its operations amid ongoing legal disputes. The landscape shifted significantly following the Biden administration's transition. In a decisive vote, the U.S. House of Representatives passed legislation against TikTok with an overwhelming majority of 360-58. The Senate followed suit in April 2024, and soon after, President Biden signed a bill that would either require TikTok to be sold or banned outright. In response, TikTok filed a lawsuit against the federal government, arguing that the ban infringed upon the First Amendment rights of the app and its American users. TikTok has consistently maintained that it does not pose a security threat, asserting compliance with U.S. data laws. The drama took another twist on December 27, 2024, when Trump publicly opposed the potential ban, claiming he could facilitate the app's continued presence in the U.S. This was a surprising departure from his previous stance. In January, the U.S. Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act, colloquially known as the TikTok ban, prompting TikTok to announce plans to suspend operations on January 19. However, the shutdown lasted less than 12 hours, with the platform returning online shortly thereafter, crediting Trump for the swift resolution. On January 20, Trump signed an executive order delaying the ban for 75 days, providing TikTok with more time to negotiate a sale or partnership. By early March, Trump reported ongoing discussions with four potential buyers. Recent reports suggest he plans to introduce TikTok America, a new entity backed by American investors that would own approximately 50% of U.S. operations, with ByteDance retaining a 19.9% stake. Currently, no finalized agreement has been reached regarding the sale, but developments are anticipated soon. Among the potential buyers is The People’s Bid, a coalition led by Frank McCourt, the former owner of the Los Angeles Dodgers, aimed at prioritizing privacy and data control with an open-source approach. Jesse Tinsley, CEO of Employer.com, is leading a consortium that has proposed a $30 billion cash offer to acquire TikTok’s U.S. operations. As the situation evolves, new interested parties continue to emerge, keeping the future of TikTok in the U.S. in a state of uncertainty.