Donald Trump’s backing of TikTok has fueled speculation about potential solutions to avert an impending ban on the Chinese-owned app in the U.S.
On December 22, speaking to a crowd in Phoenix, Arizona, President-elect Donald Trump said he is considering allowing TikTok to continue operating in the U.S. temporarily, according to Reuters.
This move signals Trump’s strong disapproval of forcing TikTok out of the U.S. market.
According to SCMP, Trump’s ongoing support for TikTok has sparked discussions on potential solutions to prevent a ban, though the path forward remains uncertain.
Trump’s Affection for TikTok
“I think we need to look at it, because, as you know, we’ve used TikTok and received fantastic engagement with billions of views,” Trump said at AmericaFest, an annual event hosted by the conservative group Turning Point.
Trump’s opposition to banning TikTok partially stems from the belief that such a ban would indirectly benefit Meta, led by Mark Zuckerberg, which owns Instagram and Facebook.
However, despite his public stance, Carl Tobias, a professor at the University of Richmond School of Law, noted that the situation remains complicated due to multiple potential solutions and Trump’s unpredictable nature.
Earlier, in April, the U.S. Senate passed a law requiring TikTok’s Chinese parent company, ByteDance, to sell the app over national security concerns.
This legislation received rare bipartisan support amid a divided Congress, making a full repeal politically unlikely even with Trump’s influence over the Republican Party.
Another possibility, Tobias suggested, is that Trump’s Justice Department could determine that ByteDance has addressed national security concerns under this law.
Trump revealed that TikTok played a significant role in garnering billions of views for his presidential campaign. (BBC image credit).
However, such a move might be perceived as a concession to China by Congress and other stakeholders.
The final option would be for ByteDance to sell TikTok to a non-Chinese buyer, although the company has consistently rejected this idea.
With 170 million monthly active users, acquiring TikTok’s U.S. operations would require significant resources.
Ultimately, as president, Trump could extend the ban deadline by 90 days to facilitate a deal.
Even so, this option is fraught with challenges. Few potential buyers have emerged, as large tech companies face antitrust concerns.
Who will be Potential Buyers?
According to SCMP, former U.S. Treasury Secretary Steve Mnuchin, who runs a private equity fund backed by SoftBank and Abu Dhabi’s Mubadala Investment Company, has expressed interest in acquiring TikTok.
Billionaire real estate investor Frank McCourt (Bloomberg image credit) and Elon Musk, who has been likened to Trump’s “right-hand man” and owns the platform X, could also play roles. Musk has voiced plans to make X more like TikTok.
McCourt has discussed his bid with over 60 policymakers and members of Trump’s transition team to propose a viable deal, he told Bloomberg.
However, McCourt’s net worth, estimated at $2.4 billion, is far below the $25 billion he believes would be necessary to purchase TikTok.
According to Bloomberg, McCourt’s key advantage lies in his strong relationship with Trump, built through shared experiences in the real estate industry.
McCourt proposes creating a decentralized alternative to TikTok, bypassing the app’s banned algorithm, and drawing inspiration from platforms like Bluesky.
TikTok’s Strategic Value
When legislation mandating ByteDance’s sale of TikTok was announced, it was no surprise that major Silicon Valley players were eager to capitalize, CNN reported.
TikTok, if sold, could become the most valuable app globally (CNN image credit).
With 170 million U.S. users, TikTok could be valued at $100 billion, according to Wedbush analyst Dan Ives.
“If sold, the platform’s strategic value and user base alone would attract financial and tech experts,” Ives noted.
At $100 billion, few companies could afford TikTok. Meanwhile, potential buyers like Meta, Alphabet, and Microsoft face legal barriers.
SCMP quoted a Republican suggesting Trump could broker a “deal of the century” to satisfy both U.S. concerns and ByteDance’s interests.
House China Committee Chairman John Moolenaar told Fox News Digital that once ByteDance complies with U.S. law, progress could accelerate.
