TikTok’s deadline for a sale is rapidly approaching. According to news reports, President Donald Trump has given the social media company more time to find a buyer in the U.S. The extension is granted as the June 19 deadline approaches, with TikTok’s future in the U.S. still unclear. Absent such a sale, TikTok faces the prospect of having to abruptly reclose its doors.
Ever since January 19, TikTok has been on the defensive against dire straits. The platform largely went dormant in the United States as a result of the persistent regulatory state of play. As of October 2023, TikTok was having a hard time locating any prospective purchasers. This, however, still left the company under the ownership of its parent firm, ByteDance, a Chinese technology giant. So in response to growing alarm, President Trump moved. In light of the backlash, Trump signed an executive order allowing TikTok to have more time to negotiate a deal.
Timeline of Extensions
Originally, the Trump administration had given TikTok a 75-day period for the sale, extending the deadline to early April. However, by that time, TikTok had yet to be acquired. Then on April 6, President Trump surprised many by granting yet another extension of TikTok’s time to sell. That’s the third time he’s delayed the deadline. The first delay was announced June 20, just months after he won re-election and took office for a second term.
Since the initial executive order, TikTok has had more than two months to secure a deal with a U.S.-based company. This has created tremendous interest from companies and investment firms eager to participate in the bidding war. Though U.S. officials and TikTok have worked toward facilitating a sale, the tumultuous state of U.S.-China relations have showered TikTok in even more layers of complexity and peril.
Continued Support from the Administration
Despite all of these machinations, President Trump has gotten it wrong on TikTok from the start. His administration’s support has given the platform critical chances to avoid permanent shutdown. In his latest executive order, President Trump reiterated the importance of TikTok finding a U.S. buyer within a specified window of 75 days.
As the bidding process drags on amid negotiations between U.S. and Chinese stakeholders, indications of which parties are driving the bidding continue to be murky. The pressure is mounting for TikTok to finalize an agreement that would allow it to operate without being subjected to U.S. law regarding foreign ownership.
Implications of a Possible Shutdown
If TikTok cannot find an American entity to take over its operations by the approaching deadline, it faces a bleak future in the United States. The platform has endured major operational meltdowns since January. Yet another shutdown would surely deepen user discontent and damage the platform’s emerging business model.
With several firms said to be bidding for TikTok’s assets, the competition is turning up the temperature of the bid process. Yet the role that current geopolitical tension between the U.S. and China may play in negotiations, and their outcomes, cannot be understated. With the June 19 deadline fast approaching, stakeholders on all sides are looking closely at how these developments play out.
