Why The TikTok Sale Is Taking Forever
By Movieguide® Contributor
With the clock ticking for parent company ByteDance to sell TikTok to a U.S. investor, the hands involved in the deal make the selling of TikTok very abnormal.
Perhaps the most unusual part of the deal is the fact that the White House is largely serving as a broker. TikTok was originally banned in the U.S. on Jan. 19, but when President Trump took the office on Jan. 20, he extended its timeline to find a U.S. investor to April 5. Four investors are now fighting to secure a deal which is largely taking place through President Trump and Vice President J.D. Vance.
“I’m not actually aware of anything like this [happening before],” government ethics lawyer Richard Briffault told Reuters. “This is at the highest levels of the government, and it’s not clear this is a strategically significant company.”
“What makes this different is it doesn’t look like this company has significant strategic significance in the United States or that there would be significant financial or strategic harm to the economy or to the country if it left, if it did not sell,” Briffault added.
TikTok, however, would provide a significant financial asset to any buyer able to secure a deal, as the platform, combined with its algorithm, are valued to be worth as much as $1 trillion dollars. The investors include a conglomerate of social media influencers led by YouTuber MrBeast and a team featuring Project Liberty founder Frank McCourt along with celebrity investor Kevin O’Leary and Reddit co-founder Alexis Ohanian. Others interested in buying the app include Elon Musk and Oracle founder Larry Ellison.
READ MORE: DO AMERICANS SUPPORT THE TIKTOK BAN?
Another unusual part of the deal, however — which throws a snag in every buyer’s goal — is the fact that ByteDance is not particularly interested in selling TikTok, and any sale would also have to clear the Chinese government.
It also remain unclear if ByteDance even needs to sell TikTok in order to keep the app operational for the upcoming years as previous statements from President Trump hint at him continuing to extend the divestment deadline if a deal is not reached by the beginning of April.
“If I need an extension, I will probably get it extended,” President Trump said earlier this month, potentially signaling a path forward for the app without divestment to a U.S. buyer.
READ MORE: PRESIDENT TRUMP LIKELY TO KEEP TIKTOK ONLINE DESPITE LOOMING DEADLINE
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