TikTok faces potential US ban as January 19 deadline looms: Who’s eyeing the $100 billion platform

The popular video-sharing platform TikTok could be banned in the US on January 19 unless it divests from its China-based parent company, ByteDance, or ceases operations entirely.

ByteDance resists divestment

Despite interest from various parties, ByteDance has consistently refused to sell TikTok. Analysts suggest that the Chinese government is unlikely to approve any sale that includes TikTok’s valuable algorithm, which is considered the platform’s core technology.

Attorneys for ByteDance have argued that divesting TikTok is not feasible commercially or technologically. They further claim that separating TikTok from its algorithm would render the US version of the app disconnected from global content. US officials, however, assert that the algorithm could be manipulated by Chinese authorities to influence content on the platform.

Valuation and interested buyers

TikTok’s valuation has been estimated at over $100 billion, with its algorithm potentially increasing its worth to $200 billion in an ideal scenario, according to Wedbush analyst Dan Ives. Without the algorithm, the platform’s value could drop to $40-50 billion.

Several high-profile figures have expressed interest in acquiring TikTok, including billionaire Frank McCourt and Shark Tank investor Kevin O’Leary. McCourt’s proposal involves restructuring TikTok using an open-source protocol to enhance transparency and user control over data.

Former Treasury Secretary Steven Mnuchin has also reportedly formed an investor group to purchase TikTok, revisiting a 2020 proposal that involved Oracle and Walmart taking significant stakes in the company. Other potential buyers include Elon Musk, Jimmy Donaldson (MrBeast), and former Activision-Blizzard CEO Bobby Kotick, though their seriousness remains unclear.

Legal and political developments

President-elect Donald Trump has asked the Supreme Court to delay the enforcement of the law to allow his administration to negotiate a resolution. The Court, which heard arguments on Friday (January 17), is expected to issue a decision soon.

Trump has pledged to save TikTok, with his transition team indicating a focus on a political resolution. If the law is enforced, it will fall to Trump’s Justice Department to ensure compliance. However, Trump’s pick for Attorney General, Pam Bondi, has not clarified her stance on upholding a potential TikTok ban.

TikTok CEO Shou Chew expressed gratitude to President-elect Donald Trump for his promise to prevent a ban on TikTok in the United States, following the company's loss in its final Supreme Court appeal.

"I appreciate President Trump's commitment to collaborating with us in finding a solution that ensures TikTok remains available in the U.S.," Chew said in a video post.

As the deadline approaches, the future of TikTok in the US remains uncertain, hinging on legal, political, and business developments.

(With AP contributions)