The White House is close to finalizing a deal that would allow a group of US investors to take over TikTok’s operations in the United States. This move would strip control from the app’s current Chinese owner, ByteDance, amid growing security concerns. According to a Financial Times report, a crucial meeting between US officials is scheduled for Thursday to finalize negotiations and potentially announce the deal.
Just hours before the anticipated deal, tech giant Amazon reportedly placed a last-minute bid to acquire TikTok’s US business. While Amazon's involvement could shift dynamics, current indications suggest that a consortium of US private equity firms, including Andreessen Horowitz and Blackstone, remains the frontrunner.
The urgency surrounding the deal stems from an approaching April 5 deadline. Under US legislative requirements, TikTok must transition its ownership to a non-Chinese entity or face an outright ban. This deadline follows increasing scrutiny over national security risks associated with Chinese ownership of the popular video-sharing app.
Several major US investors are in discussions to secure stakes in TikTok’s US operations. According to reports, the new ownership structure will include:
Andreessen Horowitz and Blackstone – Leading the acquisition with private equity investments.
Existing TikTok investors such as General Atlantic, Susquehanna, KKR, and Coatue will hold nearly 30% of the business.
ByteDance – Will retain a minority stake below 20% to comply with US legal restrictions.
Oracle’s Role – Larry Ellison’s Oracle is expected to manage TikTok’s US data security as part of the deal.
One of the most significant questions yet to be resolved is control over TikTok’s highly advanced algorithm. Two possibilities are currently being considered:
ByteDance Retains Algorithm Control – This aligns with demands from the Chinese government but may not satisfy US legal requirements.
Full US Entity Control Over the Algorithm – This would ensure compliance with US regulations but could complicate the transition process.
Apart from Amazon, another unexpected contender, Zoop—a startup founded by Tim Stokely (creator of OnlyFans)—has also submitted a bid. Zoop is reportedly collaborating with a cryptocurrency foundation to fund the acquisition, adding another layer of competition to the ongoing negotiations.
TikTok’s fate in the US has been a subject of intense legal and political debates. Former President Joe Biden signed bipartisan legislation requiring TikTok to either transition to US ownership or face a nationwide ban. ByteDance subsequently filed a lawsuit against the US government, arguing that the law violates the First Amendment and exaggerates national security risks.
Adding to the political drama, former President Donald Trump, who once pushed for TikTok’s ban, later joined the platform for his election campaign. After winning the 2024 elections, Trump requested the Supreme Court to temporarily halt TikTok’s ban, giving the company an opportunity to finalize a sale before the April 5 deadline.
With the deadline fast approaching, the final decision rests on White House approval, ByteDance’s agreement, and potential intervention from the Chinese government. If the deal proceeds as expected, it will mark one of the most significant tech acquisitions in recent history, reshaping the landscape of social media governance in the US.