TikTok’s U.S. operations bidding war intensifies  

As the U.S. government pressures TikTok’s Chinese parent company, ByteDance, to divest its American operations, multiple investor groups are vying to take control of the wildly popular social media platform.

With bids climbing above $20 billion, the final deal could be one of the largest tech acquisitions in recent history.

Current bidders and their offers

Jesse Tinsley’s Investor Group: Led by the tech entrepreneur and founder of Employer.com, this group has secured more than $20 billion for its bid. The consortium includes Roblox Corp. co-founder and CEO David Baszucki, Anchorage Digital co-founder and CEO Nathan McCauley, and YouTube star MrBeast (Jimmy Donaldson). While the group claims to have the necessary capital and a U.S.-based operational plan, ByteDance has yet to engage with them.

Project Liberty (Frank McCourt & Kevin O’Leary): Billionaire Frank McCourt, former Los Angeles Dodgers owner, has teamed up with ‘Shark Tank’ investor Kevin O’Leary to acquire TikTok’s U.S. assets. Their estimated bid is around $25 billion, with a focus on rebuilding TikTok on a decentralized digital infrastructure to enhance data privacy and user ownership.

Perplexity AI’s Proposal: A late entrant to the race, Perplexity AI has submitted a revised bid, proposing that the U.S. government hold a 50% stake in the new entity, effectively nationalizing part of the platform. This deal would align with national security concerns while keeping TikTok operational in the U.S.

Microsoft and Oracle (Potential Bidders): Although no formal bid has been announced, former President Donald Trump has suggested that Microsoft is in talks to acquire TikTok, with Oracle also being a contender. Microsoft was previously in negotiations to buy TikTok in 2020 before the deal fell through.

Background of the TikTok sale

The push to sell TikTok’s U.S. operations stems from longstanding concerns about data security and its Chinese ownership. The U.S. government, under both the Trump and Biden administrations, has expressed fears that ByteDance’s ties to China could compromise American user data and national security. In response, a law was enacted requiring ByteDance to sell TikTok’s U.S. assets by January 19, 2025, or face a ban.

Despite ByteDance’s legal challenges and resistance, the company is now running out of options to retain control of TikTok’s U.S. operations. The ongoing U.S.-China trade tensions and looming threats of increased tariffs on China by Trump have also complicated negotiations.

What’s next?

With multiple high-profile bids on the table and ByteDance yet to confirm if it will proceed with a sale, the fate of TikTok’s U.S. presence remains uncertain. If a deal is reached, it could redefine digital ownership, content regulation, and geopolitical tech policies.

Who will ultimately take control of TikTok in America, and how much will the deal be worth? The coming weeks will provide the answer as negotiations intensify and a final decision approaches.