TikTok is running out of time as it faces the possibility of a ban in the United States. Since Donald Trump took office, with his pledge to ‘save TikTok’, speculation has grown over whether the app will get a new US-based owner, receive an extension on the ban, or face restrictions once again.
Under former President Joe Biden’s administration, the US Congress passed legislation barring TikTok from operating in the country unless its Chinese parent company, ByteDance, agreed to divest its ownership.
After assuming the presidency, President Trump granted TikTok a 75-day extension through an executive order, postponing the enforcement of the ban until April 5.
With less than a month remaining before a decision must be made, the app’s future remains uncertain. The US Supreme Court has upheld the initial ruling, meaning TikTok is left with the same two choices — either divest or be banned.
TikTok ban: What happens on April 5?
If ByteDance does not divest its US operations by March 5 or secure an approved buyer by April 5, the nationwide ban could take effect. However, the deadline for Trump’s order does not appear to be final, as the president has indicated that an extension could be granted if necessary.
Also Read
While the executive order preserving TikTok’s operations has faced scrutiny, the Associated Press (AP) notes that it has not yet been legally challenged in court.
Possible TikTok deal?
Upon his return to Washington from Florida on Sunday, Trump hinted at a potential resolution for TikTok. Speaking to reporters, he confirmed that discussions were underway with “four different groups” regarding the app’s future. However, he did not disclose details about the potential deal or the parties involved.
“A lot of people want it and it’s up to me,” Trump was quoted as saying by AP while aboard Air Force One.
The president has also expressed interest in brokering a deal that would grant the US government 50 per cent control of TikTok. However, specifics on how this arrangement would work remain unclear.
Who might buy TikTok?
According to AP, several potential buyers have expressed interest in acquiring the app. In January, Perplexity AI proposed a merger with ByteDance to integrate their businesses in the US.
Another interested party is a group of investors led by billionaire Frank McCourt, which recently brought in Reddit co-founder Alexis Ohanian as a strategic advisor. This consortium has offered ByteDance $20 billion in cash for TikTok’s US business.
Jesse Tinsley, the founder of payroll firm Employer.com, has also formed a consortium that includes the CEO of the gaming platform Roblox. This group is reportedly offering more than $30 billion, making their bid even more competitive.
Trump previously stated in January that Microsoft is also considering acquiring TikTok’s US operations from ByteDance.
History of TikTok
Born from the merger of Musical.ly and Douyin, TikTok has captivated billions worldwide. TikTok’s story began in 2014 with Musical.ly, an app launched in Shanghai that allowed users to create short lip-sync videos. In 2016, ByteDance introduced Douyin in China, which quickly amassed 100 million users. By 2017, ByteDance acquired Musical.ly and rebranded it as TikTok, marking the beginning of its global expansion. By 2018, TikTok had surpassed 1 billion downloads worldwide, cementing its position as a leading social media platform.
Challenges faced by TikTok
Despite its meteoric rise, TikTok has faced numerous challenges. Privacy concerns have been a recurring issue, with allegations of data misuse and unauthorised collection of children's personal information. In 2020, governments worldwide, including the US, raised concerns over data privacy, leading to discussions about banning the app. In response, ByteDance negotiated a deal with Oracle to alleviate these concerns in the US.
In recent years, TikTok has faced lawsuits from the US Department of Justice and Federal Trade Commission, as well as from state attorneys general, alleging that the platform knowingly allowed children to create accounts and collect their data without consent. Additionally, there have been claims that TikTok intentionally designed its platform to be addictive, particularly for teenagers.
TikTok’s economic impact
As of 2025, TikTok is reported to have 1.5 billion users worldwide, with 325 million monthly active users. The platform has become a significant driver of revenue, particularly for small businesses in the US, generating $15 billion in revenue. TikTok’s user demographics show a strong appeal to younger audiences, with 55 per cent of users under the age of 30.
[With agency inputs]