In an ongoing saga surrounding the future of TikTok in the United States, President Donald Trump has granted a 75-day extension for the app to secure a non-Chinese buyer or face a potential ban.
With the clock ticking, Trump announced the delay just hours before the initial deadline was set to expire, emphasizing that significant progress had been made toward a solution.
“My administration has been working very hard on a deal to save TikTok, and we have made tremendous progress,” Trump wrote on Truth Social, confirming that further time was necessary for finalizing the deal.
This new 75-day extension pushes the deadline to June 19.
The Threat Looms Over TikTok in the US
TikTok, which boasts over 170 million American users, has faced mounting pressure due to concerns about national security.
A US law passed last year demanded that the app separate from its Chinese parent company, ByteDance, or face being shut down in the country.
The Trump administration has worked towards finding a buyer for TikTok, with promises of a deal involving several investors.
However, few details have been shared, and ByteDance has cautioned that significant challenges remain.
The company confirmed ongoing discussions with the US government but also pointed out that any resolution would be contingent on approval from China.
National Security Concerns Spark Action
The threat of a TikTok ban was first announced by the Trump administration shortly before his inauguration in January 2021, citing fears that the Chinese government could use the app to collect data on American users.
For a period, TikTok was temporarily removed from app stores, creating panic among users.
However, the situation changed when Trump announced a 75-day delay, allowing TikTok to return to the Apple and Google app stores in February.
Despite the delays, Trump has remained optimistic that a buyer will emerge and has continued to downplay any immediate danger to the app.
He expressed confidence that a deal could be struck with China to facilitate the app’s future, suggesting it could even be linked to the broader trade negotiations with Beijing.
A Potential Deal with Major US Investors
Reports suggest that the potential deal to save TikTok could involve existing US investors in ByteDance rolling their stakes into a newly independent TikTok company.
Major US players like Oracle and Blackstone, along with Walmart, have reportedly shown interest in acquiring portions of TikTok.
Notably, Oracle’s servers already host much of TikTok’s US-based activity, and the company’s chairman, Larry Ellison, is a close ally of Trump.
While the deal seems to be moving forward, one critical issue remains: the app’s algorithm.
The algorithm, which dictates the app’s content recommendations, is considered one of TikTok’s most valuable assets.
Some reports suggest that ByteDance could continue to license the algorithm to TikTok, though such an arrangement would run contrary to the law’s premise that the algorithm could potentially be weaponized by the Chinese government.
The Future of TikTok and Its Algorithm
The future of TikTok remains uncertain, particularly regarding what will happen to its highly influential algorithm.
Forrester analyst Kelsey Chickering likened TikTok without its algorithm to “Harry Potter without his wand,” emphasizing just how integral the recommendation system is to the app’s success.
As the deadline extension provides more time for negotiations, it’s clear that this ongoing drama will continue to captivate not only TikTok’s users but also those invested in the app’s future in the United States.
While no final agreement has been reached, it seems that TikTok’s fate is far from decided, and the discussions will likely continue well into the summer of 2025.
