TikTok’s Future in the U.S. and Beyond: Could It Soon Be in American Hands?

What is the current status quo?

White House-led discussions are moving fast toward a game-changing solution to keep TikTok alive in the U.S. The plan? A U.S. spin-off of TikTok with Chinese ownership cut below 20%, the legal threshold to avoid a ban. The deal, driven by major ByteDance investors like Susquehanna International Group, General Atlantic, KKR, and Coatue, would shift control to American stakeholders.

Oracle would continue safeguarding U.S. user data, keeping it walled off from Chinese access – something TikTok has long argued is already in place. Meanwhile, the White House is playing an unusually hands-on role, essentially quarterbacking the investment talks.

This comes as pressure mounts from a bipartisan law passed in 2023 requiring ByteDance to sell TikTok or face a nationwide ban, citing national security concerns. Critics, however, say the ban infringes on free speech rights.

With nearly half of Americans using TikTok, the platform’s influence is undeniable – and so is the urgency. Former President Trump, who originally backed the ban, has since shifted course, promising to “save TikTok,” even attributing part of his 2024 election win to the platform.

Multiple groups are reportedly in the mix to acquire the U.S. operations, including one led by billionaire Frank McCourt and another involving YouTube creator MrBeast.

What’s our take?

We believe that TikTok will continue to operate in the U.S. – initially through an extension of the current April 5 ban deadline, and ultimately through a sale of its U.S. operations.

This expectation is grounded in the fact that SIG, an American firm, already owns 20% of ByteDance, and Oracle, another U.S. company, powers TikTok’s U.S. infrastructure. This group of investors appears best positioned to drive a compliant and effective solution.

That said, we’re also prepared to guide you through a backup plan, should the ban be enforced.

Get in touch with us.