TikTok Faces Potential U.S. Ban as Deadline Approaches: Valuation, Buyers, and Legal Uncertainty

The widely popular video-sharing platform TikTok is at risk of being banned in the United States by January 19, unless its China-based parent company, ByteDance, agrees to divest ownership. The looming deadline has reignited debates over national security, data privacy, and the platform’s future, as lawmakers and industry leaders grapple with the implications of a forced sale.

ByteDance’s Stance and the Algorithm Controversy

ByteDance has repeatedly rejected the idea of selling TikTok, with analysts pointing to a key challenge: TikTok’s proprietary algorithm. Widely regarded as the app’s “secret sauce,” this algorithm is central to its global success and remains under tight control by ByteDance. Reports suggest the Chinese government is unwilling to approve its sale, further complicating any potential deal.

According to Wedbush analyst Dan Ives, TikTok’s valuation could exceed $100 billion, potentially reaching $200 billion if the algorithm is included in the sale. However, without it, the app’s worth could plummet to $40-$50 billion. ByteDance’s legal team argues that separating TikTok from its algorithm would severely limit its functionality in the U.S., isolating it from global content and diminishing its appeal.

Meanwhile, U.S. officials warn that the algorithm could be manipulated by Chinese authorities to influence content, fueling bipartisan concerns over national security. These fears have driven calls for swift action, with lawmakers citing the risk of foreign interference as a justification for a potential ban.

Potential Buyers Emerge

As the deadline nears, several high-profile figures and firms have expressed interest in acquiring TikTok.

•Frank McCourt, former owner of the Los Angeles Dodgers, has submitted a proposal through his internet advocacy group, suggesting a restructuring that would give users greater control over their data via an open-source protocol.

•Former U.S. Treasury Secretary Steven Mnuchin has reportedly begun assembling an investor group to make a bid. Mnuchin previously played a key role in the 2020 negotiations that nearly saw Oracle and Walmart acquire a stake in TikTok.

•Other potential buyers mentioned include Tesla CEO Elon Musk, YouTube star MrBeast (Jimmy Donaldson), and former Activision Blizzard CEO Bobby Kotick. However, it remains unclear whether they are actively pursuing bids.

Legal and Political Uncertainty

With just days remaining, President-elect Donald Trump has requested the U.S. Supreme Court delay the ban to allow for a political resolution. The justices recently heard oral arguments and are expected to issue a decision soon.

During his campaign, Trump pledged to “save TikTok”, suggesting he would negotiate a deal that both protects national security and allows the app to continue operating in the U.S. However, his administration has not provided concrete details on how this would be achieved.

Meanwhile, Pam Bondi, Trump’s nominee for Attorney General, avoided directly addressing whether she would enforce a TikTok ban during a recent Senate hearing, adding to the uncertainty surrounding the app’s future.

As the deadline approaches, TikTok’s 150 million American users await the outcome of this high-stakes legal and political battle, which could reshape the social media landscape in the U.S.