What to Know About TikTok’s Uncertain Future in the US and the People Who Want to Buy It
TikTok, the wildly popular short-video app, has become a global sensation, especially in the United States. With its addictive algorithm, viral trends, and influencers shaping everything from fashion to politics, TikTok has redefined social media. But the app’s meteoric rise hasn’t come without its share of controversy, particularly in the U.S. As tensions between the U.S. government and China escalate, the future of TikTok in America remains uncertain.
TikTok is owned by ByteDance, a Chinese tech giant, and its relationship with the Chinese government has sparked national security concerns. These concerns have led to calls for the app’s sale, potential bans, and attempts to sever its ties with China. At the same time, several powerful players are eyeing the app, hoping to either acquire it or significantly influence its operations in the U.S. This article delves into the ongoing debate over TikTok’s future in America, exploring the key factors driving the uncertainty, the political and security concerns at play, and the people and companies interested in buying TikTok.
The Roots of the Controversy
TikTok’s journey in the United States has been anything but smooth. The app, which launched in 2016 under the name Douyin in China and later rebranded as TikTok for international markets, became a global phenomenon, attracting millions of American users, including teens, influencers, and celebrities. The platform’s addictive short-video format, coupled with its powerful algorithm, enabled users to create viral content with ease.
However, the app’s rapid success in the U.S. soon attracted the attention of lawmakers and security agencies. The core issue stems from ByteDance’s ownership of TikTok and its Chinese origins. In the context of rising geopolitical tensions between the U.S. and China, U.S. officials became concerned that the Chinese government could potentially access TikTok’s vast user data. As a Chinese company, ByteDance is subject to Chinese laws that may require the company to cooperate with government surveillance efforts if requested.
U.S. officials fear that TikTok’s massive user base, especially among minors, could be a potential threat to national security. There are concerns that the Chinese government could use the data collected from American users for espionage purposes or to influence public opinion, especially given TikTok’s widespread use as a tool for political and social discourse. The Trump administration was particularly vocal about these concerns, even threatening to ban the app outright if ByteDance didn’t sell it to an American company.
The Trump Administration and TikTok
Under President Donald Trump, the U.S. government took aggressive steps to force ByteDance to divest its U.S. operations. In 2020, Trump signed an executive order that sought to ban TikTok unless the app was sold to an American company. He cited national security concerns and the potential for the Chinese government to access sensitive data on American citizens. Trump also proposed that any potential buyer of TikTok’s U.S. operations should contribute a portion of the sale proceeds to the U.S. Treasury.
This created a frenzy of potential buyers, with major U.S. tech companies lining up to acquire TikTok’s U.S. business. The most prominent suitors were Oracle and Walmart, who proposed a partnership to buy TikTok. The deal, which would have seen Oracle take a significant stake in the app’s operations while Walmart would handle the e-commerce side, was seen as a potential solution to the U.S. government’s security concerns. However, the deal was never finalized due to various legal and political hurdles, and the TikTok ban threat ultimately fizzled out after Trump left office.
The Biden Administration’s Approach
With President Joe Biden taking office in 2021, the situation regarding TikTok in the U.S. shifted slightly. While Biden has not pushed for an immediate ban, the app’s future remains in limbo. The Biden administration has signaled a more measured approach, acknowledging concerns about TikTok’s data privacy practices but opting for a more thorough review rather than a hasty ban.
In 2021, the Committee on Foreign Investment in the United States (CFIUS), a U.S. government body tasked with reviewing foreign investments in U.S. companies, began investigating TikTok’s data privacy practices. The review was initiated to assess whether TikTok’s data practices posed a national security risk, particularly regarding how the app handles American user data.
Biden’s team has also expressed interest in negotiating a deal where TikTok could continue operating in the U.S. under certain conditions, such as changes to its data security policies or a forced sale of its U.S. operations. However, there is no clear path forward yet, and the issue remains unresolved.
National Security Concerns and Data Privacy
At the heart of the debate surrounding TikTok’s future in the U.S. are the broader concerns about data privacy. The app collects vast amounts of data on its users, including location information, browsing habits, and device identifiers. The question of how this data is stored, who has access to it, and whether it could be used by the Chinese government remains at the forefront of U.S. security concerns.
TikTok has repeatedly denied allegations of improper data practices, asserting that user data is stored outside of China in data centers located in the U.S. and Singapore. The company has also made efforts to increase transparency, including hiring a U.S.-based team to oversee its data security operations.
However, these reassurances have not quelled fears in Washington. U.S. officials argue that the Chinese government’s ability to influence or demand access to the data is a critical risk. Moreover, the Chinese government’s track record on data privacy and surveillance has led to heightened scrutiny of Chinese companies operating abroad.
Potential Buyers: Who Wants TikTok?
The uncertainty surrounding TikTok’s future in the U.S. has led to a number of potential buyers expressing interest in acquiring the app, particularly American companies eager to capitalize on its massive user base and popularity.
1. Oracle and Walmart (2020)
As mentioned earlier, Oracle and Walmart were the most notable contenders during Trump’s push to force a sale. Oracle, a cloud computing giant, proposed a partnership with Walmart to buy TikTok’s U.S. operations. Oracle would have handled the app’s data security and cloud infrastructure, while Walmart would have focused on e-commerce. The deal was seen as a way to address the national security concerns while keeping TikTok operational in the U.S. However, due to regulatory hurdles and the Trump administration’s departure, the deal never came to fruition.
2. Microsoft (2020)
Another major player that expressed interest in purchasing TikTok’s U.S. operations was Microsoft. The software giant attempted to strike a deal with ByteDance, which would have seen Microsoft acquire TikTok’s U.S. business. This deal was ultimately unsuccessful, but Microsoft’s interest underscored the potential value of TikTok in terms of its vast user base and data collection capabilities. Microsoft has continued to focus on acquisitions that align with its cloud and enterprise business, so TikTok would have been an attractive asset for its long-term growth.
3. ByteDance’s Own Solutions
While U.S. companies have been eyeing TikTok, ByteDance itself has been working to avoid a forced sale. The company has made multiple efforts to reassure U.S. regulators, including setting up a U.S.-based transparency center to monitor the app’s operations and hiring a team of American executives to oversee its business in the U.S. ByteDance has also sought to distance itself from the Chinese government, arguing that it operates independently and that the Chinese government has no access to TikTok’s data.
4. Other Potential Buyers
Aside from Oracle, Walmart, and Microsoft, other tech giants have also been rumored to be interested in acquiring TikTok. Companies like Google, Facebook (Meta), and Amazon have all considered the strategic advantages of acquiring such a widely-used platform. TikTok’s ability to generate revenue through ads, its vast and engaged user base, and its powerful algorithm make it an attractive acquisition target for any company looking to expand its influence in the social media or digital advertising space.
The Future of TikTok in the U.S.
The uncertainty surrounding TikTok’s future in the U.S. remains unresolved. The app’s widespread popularity means it is unlikely to disappear overnight, but the geopolitical and security concerns tied to its Chinese ownership could force significant changes. The Biden administration has yet to make a definitive move, leaving the door open for negotiations or regulatory actions.
If TikTok is eventually forced to sell its U.S. operations, the outcome will likely involve a compromise that balances national security concerns with the interests of both U.S. regulators and ByteDance. Whether the app remains under Chinese ownership or is absorbed by an American company, one thing is clear: TikTok’s future in the U.S. will remain a point of contention in the ongoing U.S.-China tech rivalry.
In the meantime, users can continue to enjoy the app’s viral trends, dances, and memes—at least until the next round of government decisions brings more uncertainty to TikTok’s future in the United States.
