TikTok on the Brink: Can Trump or ByteDance Save the Platform from a U.S. Ban?

Although ByteDance entered negotiations with Oracle and Walmart to create a U.S.-based entity called TikTok Global, the deal never materialized. Legal challenges successfully delayed enforcement of Trump’s executive orders, allowing TikTok to continue operating. However, the change in administration did not ease the app’s troubles. President Biden’s administration maintained similar concerns about national security, leading to renewed bipartisan support for action against the platform.

By early 2023, more than a dozen states had banned TikTok on government devices, and Montana attempted a statewide ban, citing data privacy issues. Although TikTok challenged and overturned Montana’s ban in federal court, the political momentum was undeniable. Congress passed legislation requiring ByteDance to sell TikTok to a non-Chinese company or face a nationwide ban—a law now upheld by the Supreme Court.

ByteDance faces immense pressure to sell TikTok, yet the company has been reluctant to part with its most valuable asset. TikTok’s U.S. operations are valued between $40 billion and $50 billion. However, much of this value is tied to TikTok’s proprietary algorithm, a critical component of the app’s success. The Chinese government has imposed export restrictions on technology like TikTok’s algorithm, complicating any potential sale.

Potential buyers have emerged, including a group led by billionaire Frank McCourt and Shark Tank investor Kevin O’Leary. Their formal bid aims to purchase TikTok’s U.S. assets, excluding the algorithm, with promises to rebuild the platform around a more transparent and secure user experience. However, without the algorithm, TikTok may lose its distinctive appeal and functionality, raising doubts about the viability of such a deal.

Additionally, rumors suggest ByteDance may be considering selling to figures like Elon Musk, although these reports remain unconfirmed. Selling to a U.S. entity without transferring the algorithm could result in a watered-down version of TikTok, alienating its user base.

Former President Donald Trump, who once spearheaded efforts to ban TikTok, has dramatically shifted his stance. Now with 14.8 million followers on the platform, Trump has pledged to save TikTok. His reversal appears politically motivated, aimed at courting younger voters who make up a significant portion of TikTok’s audience.

Trump’s options to intervene are limited. The law does allow for a one-time, 90-day extension if there is evidence that ByteDance is actively pursuing a sale. However, triggering this extension requires demonstrable progress toward a binding sale agreement, which ByteDance has yet to show.

Trump’s public advocacy for TikTok, including direct appeals to his supporters and interactions with TikTok influencers, underscores his desire to align with the platform’s massive user base. Whether he can influence the legal and political mechanisms needed to delay or halt the ban remains uncertain.

TikTok is not just another social media platform; it has reshaped how content is created and consumed. The platform has launched countless viral trends, music hits, and even small business success stories. Its influence spans industries, from fashion and food to politics and activism.

A ban would disrupt millions of content creators who rely on TikTok for income, exposure, and community building. Influencers, entrepreneurs, and small businesses have leveraged the app’s algorithm to reach global audiences. Without TikTok, many of these creators would struggle to transition to other platforms like Instagram Reels or YouTube Shorts, which lack TikTok’s unique discovery algorithm.

Moreover, advertisers and brands that have invested heavily in TikTok marketing campaigns would face significant losses. The app’s tailored content delivery system has proven more effective for targeted advertising than its competitors, making it a critical tool for digital marketing.

TikTok’s fate in the U.S. could have far-reaching global implications. The forced sale or ban of TikTok sets a precedent for how governments handle foreign-owned technology companies. Countries worldwide are closely watching the situation, potentially considering similar actions against platforms they deem security threats.

This shift toward digital sovereignty could lead to a more fragmented internet, with national governments erecting digital borders. Such fragmentation could stifle innovation and limit the global reach of tech companies, fundamentally altering the landscape of the digital economy.

Additionally, retaliatory measures from China against U.S. tech companies could escalate trade tensions, further complicating international business relations.

Despite the growing pressure, ByteDance has not remained passive. The company continues to engage in high-profile sponsorships and public relations campaigns, signaling its commitment to the U.S. market. Reports suggest TikTok may prepare to shut down its U.S. operations voluntarily, directing users to educational resources about the ban. This strategy could shift the narrative, portraying TikTok as a victim of political overreach.

However, ByteDance’s best hope lies in finding a buyer willing to purchase TikTok without its algorithm or in leveraging political changes to delay the ban. Yet, time is running out.

TikTok is facing its most significant challenge yet. ByteDance must decide between selling the app or accepting a ban that would cut off 170 million U.S. users. Former President Trump’s efforts to save TikTok add another layer of political complexity, but his ability to influence the outcome remains unclear.

The coming days will determine TikTok’s fate in the U.S. market. Whether it survives or succumbs to political and legal pressures, this saga will leave a lasting impact on global tech regulation, digital sovereignty, and the future of social media.

For now, creators, businesses, and millions of users are holding their breath, waiting to see if TikTok can once again escape the tightening grip of regulatory action—or if this time, the clock has run out.

By Keyeon Fan