Vance Says TikTok Will ‘Almost Certainly’ Reach Deal To Avoid U.S. Ban Next Month
by Antonio Pequeño IV · ForbesTopline
Vice President JD Vance told NBC News on Friday “there will almost certainly be a high-level agreement” that stops TikTok from being banned in the U.S. this April, expressing optimism a deal could be reached that addresses national security concerns about the Chinese-owned social media app.
Key Facts
Vance told NBC he believes a deal will be struck that “satisfies our national security concerns” and “allows there to be a distinct American TikTok enterprise.”
President Donald Trump signed an executive order immediately after taking office this year that pushed TikTok’s initial January ban to April 5, giving the administration time to find an American buyer for the app.
Vance did not share details about potential buyers with NBC and said clerical issues could cause the deal to be finalized after the deadline, adding, “The question is whether we can get all the paper done.”
The vice president also said the Trump administration would like to get a deal done without another extension, but noted concerns about how equity ownership of the app would be split up and the volume of legal paperwork needed to enforce it could be an impediment.
Vance said he believes TikTok will remain operational in the U.S. and “also operational in a way that’s protective of Americans’ data privacy and America’s national security.”
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Contra
Trump said last week he would “probably” extend the deadline for TikTok’s potential ban, adding “we have a lot of interest in TikTok… so hopefully China will approve of the deal.”
Who Could Buy Tiktok?
A handful of billionaires and large companies have been eyed as potential buyers for TikTok since its future in the U.S. came under question—though it’s unclear who could buy the app, especially since its owner, ByteDance, has opposed selling it. Trump said in January he hoped a “bidding war” would materialize for TikTok, suggesting Microsoft, which made an offer for the app in 2020, was one of the companies interested in acquiring TikTok. Computer software giant Oracle has also been pegged as a potential buyer that would take a majority stake in TikTok while ByteDance keeps a minority stake. Billionaire Frank McCourt’s internet advocacy group Project Liberty announced a formal offer for TikTok in January backed by Guggenheim Securities, “Shark Tank” investor Kevin O’Leary and others. Jimmy Donaldson, who has the most subscribers on YouTube and is better known as MrBeast, joined an investor group led by tech entrepreneur Jesse Tinsley that made an all-cash offer for TikTok in January. Chinese officials have reportedly discussed letting ByteDance sell TikTok to pro-Trump billionaire Elon Musk, though Musk says he isn’t planning on buying it.
Key Background
Former President Joe Biden signed a bipartisan law last year forcing TikTok to find an American buyer or face a ban in the U.S. by January. Trump, who championed the app in the latter days of his presidential campaign despite previously supporting a nationwide ban, vowed to save the app from a ban last year. At the heart of the law against the app was national security concerns from lawmakers on both sides of the aisle who claimed China could use the app to spy on Americans and influence discourse in the U.S. TikTok has denied accusations it compromises Americans’ data privacy and allegations it is beholden to the Chinese Communist Party. Reporting from Forbes found ByteDance had spied on journalists, stored some creators’ data in China, mishandled advertiser data and allowed staff to view unsecured information on celebrities and politicians. Some 170 million American users are on TikTok, according to the app.
Further Reading
TikTok Ban Timeline: TikTok Returns To U.S. App Stores—For Now (Forbes)