President Trump’s divest-or-ban mandate for TikTok’s U.S. operations has ignited a frenzied sales race that imperils access for over 150 million American users.
At a Glance
- A 2024 law compels ByteDance to sell TikTok’s U.S. arm or face a nationwide ban.
- The divestiture deadline was extended to September 17, 2025, by presidential order.
- Trump announced that undisclosed investors aim to acquire TikTok’s U.S. business.
- Any sale must win approval from both U.S. and Chinese authorities.
- Federal regulators delayed enforcement but have signaled no further extensions.
Sale Scramble Intensifies
Congress enacted the Protecting Americans from Foreign Adversary Controlled Applications Act in December 2024, forcing ByteDance to divest TikTok’s U.S. operations by January 19, 2025, or face a full shutdown Protecting Americans from Foreign Adversary Controlled Applications Act. Multiple legal challenges failed when the Supreme Court declined to block enforcement, cementing the sale-or-ban deadline on February 10, 2025.
The Biden administration paused enforcement late last year, but President Trump rescinded that delay on January 20, 2025, issuing a 75-day extension to negotiate a purchase. He has since granted one further extension to mid-September 2025 amid intensifying private bids CNN report.
Watch a report: TikTok Ban Looms.
https://www.youtube.com/watch?v=abcd1234
Potential Buyers Revealed
In a June 30 interview, Trump teased that “very wealthy people” stand ready to bid for TikTok’s U.S. arm, though he declined to name them. Industry insiders report interest from private equity firms and at least one major tech company, yet Amazon has publicly denied making an offer The Verge coverage. Observers warn that an opaque consortium could exacerbate data-security concerns if ownership details remain undisclosed.
Veteran dealmakers note that any buyer must satisfy stringent Committee on Foreign Investment in the United States (CFIUS) scrutiny before closing, raising the bar for private equity consortia without a proven compliance track record.
High-Stakes Approval
Even with a sale agreement, finalizing the transfer hinges on dual-government sign-offs: CFIUS in Washington must clear the deal on national-security grounds, and Beijing must authorize the export of TikTok’s recommendation algorithm under its export-control rules CFIUS guidelines. Analysts caution that rising U.S.-China tensions could derail the process at any stage, triggering an immediate app suspension.
With more than $9 billion in U.S. advertising revenue at stake and 150 million active users, the outcome of this divestiture showdown will determine whether TikTok survives in America or vanishes overnight, upending content creators and marketers alike.
