What is the next move for TikTok?

TikTok's future in the United States is uncertain as the platform faces a looming January 19, 2025 deadline to divest its U.S. operations or risk being banned. With over 150 million American users, TikTok has become a leading force in social media, shaping digital culture and commerce. However, concerns about data security and Chinese ownership have led U.S. lawmakers to demand a sale, forcing ByteDance, TikTok’s parent company, to find a buyer. This situation has sparked interest from potential investors, tech giants, and even government-backed proposals.

One of the biggest names rumored to be interested in TikTok was Elon Musk, given his previous acquisition of Twitter (now X). However, Musk recently dismissed these speculations, stating that he has no plans to buy TikTok or integrate it into his business ventures. His stance suggests that acquiring social media platforms is not a priority for him beyond Twitter. With Musk out of the picture, other potential buyers are stepping in. 

One of the strongest bids comes from billionaire Frank McCourt, who is preparing a $20 billion offer to acquire TikTok’s U.S. operations. McCourt envisions transforming the platform into a decentralized, user-owned model where individuals have greater control over their data. His Project Liberty initiative focuses on rebuilding social media to prioritize transparency and privacy. By migrating TikTok’s infrastructure to an open-source protocol, McCourt’s plan would move away from the traditional ad-based revenue model and shift toward e-commerce and AI-driven monetization. If successful, this approach could redefine how social media platforms operate. 

Another proposal comes from Perplexity AI, which suggests merging TikTok’s U.S. operations into a new entity called “NewCo.” Unlike McCourt’s decentralized vision, Perplexity AI’s proposal involves allowing ByteDance to retain its recommendation algorithm while the U.S. government takes up to a 50% ownership stake after an IPO. This plan aims to address national security concerns by ensuring that the U.S. has some control over the company while keeping TikTok’s operations largely intact. However, this proposal raises concerns about government involvement in social media, which could lead to debates over privacy, free speech, and corporate independence. 

Microsoft, which previously attempted to buy TikTok in 2020, is also back in discussions. With its experience managing LinkedIn, Microsoft could offer stability and expertise in handling a major social platform. However, negotiations will likely center on ByteDance’s algorithm, which is crucial to TikTok’s success. Without it, the platform’s appeal and engagement could decline. 

Meanwhile, TikTok is not waiting for a sale to secure its future. The company is aggressively expanding its e-commerce initiative, TikTok Shop, integrating shopping directly into the app. By leveraging influencer-driven sales, TikTok hopes to diversify revenue beyond advertising, making itself more attractive to investors. 

With the January deadline approaching, ByteDance must finalize a deal or risk being shut down in the U.S. Whether through a corporate acquisition, a government-backed merger, or legal resistance, TikTok’s next move will significantly impact the social media landscape. The coming months will determine who controls one of the most powerful platforms in the world and how it evolves in response to regulatory pressures and market demands.