The nationwide ban on TikTok has sparked intense speculation about the future of its U.S. operations and the potential buyers for the app. Enforced to address national security concerns tied to ByteDance’s ownership and its links to China, the ban has left TikTok inaccessible to American users. However, a variety of corporations, billionaires, and investment firms are vying for the chance to acquire TikTok’s U.S. assets, potentially paving the way for its return.
Among the proposals, AI search engine startup Perplexity, in collaboration with New Capital Partners, has emerged as a notable contender. This agreement would reportedly allow existing investors to retain equity stakes while redesigning the platform under U.S. jurisdiction. Elon Musk has also been mentioned as a potential buyer, with Chinese officials reportedly viewing him as a suitable candidate, though ByteDance has dismissed these claims. Additionally, popular content creator Jimmy Donaldson, aka MrBeast, has expressed interest in purchasing TikTok, reportedly backed by several billionaires eager to help him make the acquisition.
Project Liberty, led by billionaire Frank McCourt and supported by investor Kevin O’Leary, has proposed to prioritize user privacy and minimize data collection as part of their bid. O’Leary suggested a $20 billion syndicate to manage TikTok’s U.S. operations. Retail giant Amazon, already one of TikTok’s largest advertisers, has also expressed interest, a move that would bolster its dominance in e-commerce and social media advertising. Other interested parties include video-sharing platform Rumble and former Activision Blizzard CEO Bobby Kotick, who is reportedly seeking funding from notable figures like OpenAI CEO Sam Altman.
Former Treasury Secretary Steve Mnuchin has also explored forming a group to acquire TikTok, suggesting a potential overhaul of its algorithm. However, ByteDance has indicated that its proprietary algorithm would not be part of any sale. TikTok has been valued at approximately $100 billion, including its algorithm, but analysts believe the U.S. operations could sell for $40–50 billion without it. The app’s immense popularity and revenue potential underscore these valuations, despite the controversies surrounding its ownership.
The ban, upheld by the U.S. Supreme Court, compels ByteDance to sell TikTok’s U.S. assets or face permanent exclusion. The move follows accusations of data mishandling, spreading propaganda, and alleged ties to the Chinese government, all of which ByteDance has denied. President-elect Donald Trump has pledged to extend the deadline for a sale by up to 90 days to facilitate negotiations. Trump has also proposed that at least 50% of TikTok’s ownership should be held by Americans, potentially allowing the app to resume operations during this interim period.
The competitive bidding for TikTok’s U.S. operations represents a pivotal moment for social media and digital advertising. It also underscores the challenges of addressing national security concerns while preserving the app’s financial viability. As negotiations continue, the outcome will have far-reaching implications for ByteDance, prospective buyers, and the broader tech industry.
