Who will buy TikTok as Trump pushes for a U.S. takeover?

With TikTok facing a forced divestiture, potential buyers including Elon Musk, Microsoft, and Oracle are exploring bids, while China remains resistant to losing control.

The TikTok app page is displayed in the Apple App Store on a smartphone in the Queens borough of New York, U.S., on Wednesday, January 15, 2025. Photo by Gabby Jones/Bloomberg

By Alana Salsabila and Anna Fadiah

The fate of TikTok is once again uncertain as President Donald Trump pushes for a forced sale of the video-sharing platform to a U.S. owner. Under an executive order signed in January 2025, TikTok’s parent company, the Chinese firm ByteDance, has until early April to divest the app or face a ban in the United States. The move, aimed at addressing national security concerns, has sparked a race among tech giants and investors eager to take control of one of the world’s most popular social media platforms.

Since announcing the order, Trump has hinted at multiple scenarios, from a competitive bidding process to the possibility of the U.S. government owning a stake in the app. High-profile names such as Microsoft, Oracle, and Elon Musk have been floated as potential buyers, while other investors, including billionaire Frank McCourt and YouTube star MrBeast, have also expressed interest. However, the complexities surrounding the sale—particularly China’s reluctance to give up control over TikTok’s algorithm—pose significant challenges.

Why is TikTok up for sale?

The U.S. government has long viewed TikTok as a national security risk, citing concerns that ByteDance could be compelled to share user data with the Chinese government or use the platform to spread propaganda. These fears led to the enactment of a law barring companies from updating or distributing TikTok in the U.S. unless ByteDance divests its ownership.

Trump’s executive order intensified the pressure, setting a firm deadline for the sale. The law stipulates that TikTok cannot maintain operational ties with any Chinese-owned entity, further complicating potential deals. ByteDance, for its part, has repeatedly insisted that it cannot sell the app outright, especially since China’s government has imposed strict export controls on the algorithm that powers TikTok’s recommendation system.

Who are the potential buyers?

A number of companies and investors have expressed interest in acquiring TikTok, with some aiming to purchase the platform with or without its algorithm.

Elon Musk: Having already taken control of Twitter (now X) in 2022, Musk is seen as a possible contender. His extensive business ties in China, through Tesla, could work in his favor if Beijing is more willing to sell to him than to other U.S. buyers. However, Musk has not publicly commented on whether he intends to pursue TikTok.
Microsoft and Oracle: Both tech giants previously attempted to acquire TikTok in 2020 when the Trump administration last attempted to force a sale. Microsoft, in particular, has deep experience in cloud computing and AI, making it a strong candidate. Oracle, a longtime government contractor, could also benefit from TikTok’s vast data infrastructure.
Frank McCourt and Kevin O’Leary: The billionaire investor and “Shark Tank” star have formed a consortium to purchase TikTok without its algorithm. Their valuation of the app, at around $20 billion, is significantly lower than what TikTok could fetch with its recommendation technology intact.
MrBeast (Jimmy Donaldson): The YouTube megastar has been in discussions with various investors about playing a strategic role in an acquisition, though he is not expected to fund a purchase himself.
Jesse Tinsley and Employer.com: Tinsley, the founder of Employer.com, has assembled a group of investors, including Roblox’s CEO, in a bid for TikTok. However, the feasibility of this group securing the necessary funds remains uncertain.

Despite the interest, no deal has been finalized, and ByteDance has not publicly confirmed any negotiations.

Will the U.S. sovereign wealth fund play a role?

Adding another layer of complexity, Trump recently signed an executive order to establish a U.S. sovereign wealth fund, which he suggested could invest in TikTok’s acquisition. This proposal has raised questions about how the government could structure such an investment while addressing national security concerns.

The legal framework for government ownership of a private company remains unclear. Moreover, while the idea of partial government ownership could help ease national security worries, it may not satisfy the conditions of the law, which explicitly prohibits TikTok from maintaining any ties to Chinese-controlled entities.

Could TikTok operate without its algorithm?

A key issue in the sale is whether TikTok can function without its proprietary algorithm, which is widely credited for the app’s success. China updated its export control laws in 2020 to prevent the transfer of technologies like TikTok’s algorithm, making it unlikely that any sale would include the crucial recommendation system.

Some potential buyers, including McCourt, have suggested acquiring TikTok without the algorithm and developing a new system. However, such an approach could dramatically change the user experience and significantly diminish the app’s appeal. Without its AI-driven recommendation engine, TikTok might struggle to retain its massive audience, making it a far less attractive investment.

What are the obstacles to a sale?

Several roadblocks could derail TikTok’s sale, including:

China’s resistance: Beijing has signaled that it will not allow ByteDance to sell TikTok’s algorithm, which could deter potential buyers.
Legal challenges: TikTok has argued in court that a forced sale is neither legally nor commercially viable, raising the possibility of lengthy litigation.
Shifting market dynamics: Unlike in 2020, when TikTok first faced a potential ban, tech companies now have different priorities. Many have shifted their focus to artificial intelligence, investing billions in AI research and development. Acquiring TikTok would represent a major strategic pivot for any buyer.
Regulatory scrutiny: Large tech firms such as Meta or Google would likely face antitrust scrutiny if they attempted to purchase TikTok, potentially blocking any deal.

Will TikTok remain the same under new ownership?

If a sale goes through, TikTok could undergo significant changes depending on its new owner. Some users fear that the platform could experience a transformation similar to Twitter’s rebranding as X under Musk, leading to shifts in content moderation, monetization, and overall user experience.

The uncertainty surrounding TikTok’s future has also raised concerns for advertisers and content creators who rely on the platform for revenue. If ownership changes hands, policies regarding data privacy, content promotion, and monetization could be revised, impacting millions of users worldwide.

What happens next?

With the April deadline looming, negotiations are expected to intensify in the coming weeks. Any potential buyer will need to navigate complex political and regulatory hurdles, while ByteDance will likely seek ways to retain some level of control over TikTok’s technology.

While a sale remains a possibility, the uncertainty surrounding the process means that TikTok’s fate is far from decided. As Trump pushes for a U.S. takeover, the battle for TikTok is shaping up to be one of the most consequential corporate showdowns of the year.