TikTok on the Clock: What is its Future

As the clock ticks on ByteDance’s deadline to sell TikTok’s U.S. operations, the question looms: who will step in to acquire one of the world’s most popular social media platforms? With former President Donald Trump’s recent executive order granting ByteDance a 75-day extension to find a U.S. buyer, the list of potential suitors has grown to include some high-profile names such as YouTube star MrBeast, Tesla CEO Elon Musk, and Oracle co-founder Larry Ellison. Each candidate brings their own unique strengths and challenges to the table, but the stakes remain high for all parties involved.

TikTok’s parent company, ByteDance, is a Chinese tech giant that has faced intense scrutiny from U.S. lawmakers and regulators over its handling of user data. Critics argue that TikTok’s data collection practices pose a national security risk, with fears that the Chinese government could access sensitive information about American users. These concerns prompted the Trump administration to mandate ByteDance’s divestiture of TikTok’s U.S. operations, citing national security as the primary reason. While ByteDance initially resisted the idea of selling TikTok, recent developments suggest a shift in strategy. Mao Ning, a spokesperson for China’s Foreign Affairs Ministry, recently hinted at a willingness to consider partial divestiture. Meanwhile, General Atlantic CEO Bill Ford, a major ByteDance investor, expressed confidence that a deal would be reached. Despite these signs of progress, the situation remains fraught with challenges, particularly regarding TikTok’s proprietary algorithm, a critical component of the app’s success.

Who Could Buy TikTok?

1. MrBeast

Jimmy Donaldson, better known as MrBeast, is one of the most prominent YouTubers in the world. Known for his philanthropic stunts and viral videos, Donaldson recently posted a video announcing his interest in acquiring TikTok. While his bid may seem unconventional, it underscores the growing influence of social media creators in the tech world. However, Donaldson would likely need to assemble a consortium of investors to finance the acquisition, given TikTok’s estimated valuation of up to $50 billion. Donaldson’s appeal lies in his deep understanding of social media trends and his ability to connect with younger audiences. However, critics question whether a creator-focused approach would be sufficient to address the regulatory and operational complexities of managing TikTok’s vast user base and data infrastructure.

2. Elon Musk

Elon Musk, CEO of Tesla and SpaceX, has emerged as a leading contender in the TikTok saga. With his extensive business interests in both the U.S. and China, Musk is uniquely positioned to navigate the geopolitical challenges associated with the acquisition. Reports have even suggested the possibility of merging TikTok with X, which Musk acquired in 2022. Musk’s involvement raises intriguing possibilities, particularly regarding the integration of TikTok’s algorithm with X’s platform. However, there are concerns about Musk’s focus on freedom of speech and his history of controversial decisions as X’s CEO. Additionally, his close ties to China could complicate efforts to secure approval from U.S. regulators.

3. Larry Ellison

Oracle co-founder Larry Ellison has long been a proponent of using technology to enhance national security. In 2020, Oracle was briefly in talks to acquire TikTok, though the deal ultimately fell through. Ellison’s renewed interest in the platform reflects his belief in the strategic value of TikTok’s user data and algorithm. As a seasoned executive with decades of experience in enterprise technology, Ellison’s bid would likely emphasize compliance with U.S. data privacy regulations. However, Oracle’s lack of experience in consumer-facing platforms could pose a challenge, particularly when it comes to retaining TikTok’s younger, tech-savvy audience.

4. The People’s Bid

Billionaire Frank McCourt’s Project Liberty has proposed a consortium called “The People’s Bid,” which aims to acquire TikTok as a public utility. This approach would prioritize transparency and data privacy, positioning TikTok as a platform owned and governed by its users. While the idea is ambitious, it remains to be seen whether a grassroots model could generate the necessary funding and regulatory approval. 

One of the most significant challenges in any potential sale is TikTok’s algorithm, which is widely regarded as the secret sauce behind the platform’s success.ByteDance has been reluctant to share the algorithm’s underlying code, and any deal would need to address how the technology is transferred and managed. TikTok also faces competition from platforms like Instagram Reels, YouTube Shorts, and Snapchat Spotlight. Any new owner would need to invest heavily in maintaining TikTok’s competitive edge while adapting to evolving user preferences. 

For now, TikTok’s future remains uncertain. The app’s removal from Apple and Google app stores has created a sense of urgency among users and prospective buyers alike. While some iPhone owners have taken advantage of the situation by selling devices with TikTok pre-installed for exorbitant prices, the broader question of the platform’s long-term viability hangs in the balance. President Trump’s proposal for a joint venture that grants the U.S. a 50% ownership stake offers one possible solution. However, this model would still require ByteDance to divest at least 80% of its stake, as mandated by law. Trump has also expressed support for a deal involving Musk or Ellison, emphasizing the importance of securing a buyer who aligns with U.S. national security interests.