TikTok’s US Future Uncertain as National Security Concerns Rise

TikTok’s US operations face a volatile future as the country’s government pushes for the platform’s divestiture, prompting a flurry of investment activity. Despite legal challenges and an executive order to sell or ban TikTok, a number of US investors and companies are positioning themselves to acquire the app’s operations in the country, with its valuation potentially reaching US$60 billion.

The pressure on TikTok, owned by the Chinese company ByteDance, stems from national security concerns, particularly regarding the potential for the Chinese government to access US user data, concerns that have led to legal challenges since 2020. While TikTok has consistently denied that it poses a security threat, the US government remains focused on ensuring the app's data practices comply with domestic laws. 

Under the administration of former US President Joe Biden, the US Senate and House of Representatives passed a bill requiring TikTok to sell or face a ban, further escalating the pressure on the platform. "We are united in our concern about the national security threat posed by TikTok, a platform with enormous power to influence and divide Americans whose parent company ByteDance remains legally bound to do the bidding of the Chinese Communist Party," reads an Official House of Representatives press release.

TikTok’s tumultuous relationship with the US government began in 2020 when President Trump sought to force ByteDance to sell its US operations, citing concerns about user data being accessible to the Chinese government. In response, TikTok sued the US government, claiming the ban violated its First Amendment rights. Later, the Biden administration pushed forward with efforts to secure a sale or ban of the platform.

In December 2024, then President-elect Donald Trump reversed his stance on the ban, suggesting a potential solution where ByteDance retains partial ownership in TikTok's US operations. Under Trump’s proposed arrangement, the platform could maintain a 50-50 ownership split between ByteDance and a US-based company. This shift came after the US Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which set the stage for a potential ban or sale.

While the US government’s actions against TikTok continue, the app’s future in the country is far from settled. The platform briefly shut down in January 2025 following the enactment of the PAFACA, but TikTok resumed operations within 12 hours thanks to a last-minute extension signed by Trump, which postponed the ban for 75 days.

Several investors and companies are now in active discussions to acquire TikTok’s US operations. The People’s Bid for TikTok, organized by Project Liberty founder Frank McCourt, is one such initiative, with backing from investment firm Guggenheim Securities and law firm Kirkland & Ellis. The consortium includes high-profile figures such as investor Kevin O’Leary, World Wide Web inventor Tim Berners-Lee, and MIT’s David Clark. Their mission is to prioritize user privacy and data control, positioning the acquisition as a more open and user-centered alternative to other bids.

Another prominent investor group is the American Investor Consortium, which includes figures like David Baszucki, Co-Founder, Roblox, and Nathan McCauley, CEO, Anchorage Digital. 

Several other parties have expressed interest in acquiring TikTok, including former Activision CEO Bobby Kotick, former US Treasury Secretary Steven Mnuchin, and tech giants Oracle and Microsoft, as TechCrunch reports. Walmart, aiming to expand its e-commerce reach, and Rumble, a YouTube alternative, have also reentered the bidding process. Perplexity AI, an AI search engine startup, is also reportedly vying for ownership.