TikTok is once again facing a critical deadline to either sell off or cede its US operations by Saturday, April 5, 2025. This date marks the end of a 75-day extension that had delayed the enforcement of a potential nationwide TikTok ban. If no agreement is reached to find a new owner by then, the company’s future in the US could be in jeopardy. There have been talks of a possible deal, but details remain unclear as the deadline nears.
Potential Buyers for TikTok Propose Different Visions, Facing Algorithm Control Challenges
Several potential buyers have shown interest in acquiring TikTok, each with different visions for the platform’s future. Notable figures like YouTuber MrBeast, Reddit cofounder Alexis Ohanian, and Perplexity AI have entered the bidding scene. Oracle, which nearly bought TikTok in 2020, is also considered a key player in the negotiations.
However, the future of TikTok will depend on the buyer, as ByteDance, TikTok’s Chinese parent company, is unlikely to allow control of its recommendation algorithm, a key component of the app’s success.
TikTok Faces April 5 Deadline as Buyers Weigh Takeover and Algorithm ChallengesIf a new company were to take control, it would face significant challenges, particularly in recreating TikTok’s central feature: its recommendation algorithm. Perplexity AI has suggested it could reverse-engineer the “For You” feed and make it open source, while also implementing a community-based fact-checking system.
Reddit’s Alexis Ohanian, part of a group called Project Liberty, hinted at integrating blockchain technology into TikTok’s future. These proposals indicate that any transition of ownership could drastically alter the app’s functionality and user experience.
White House Considers Alternative Plan, Potential Legal and Approval Hurdles for TikTok
Alternatively, the White House is considering a plan that would allow TikTok’s existing US investors to maintain stakes in a new independent global TikTok entity. Under this arrangement, Oracle would oversee US data while ByteDance keeps control of the algorithm.
While this could ensure a smoother transition, it may face legal challenges, particularly under the Protecting Americans from Foreign Adversary Controlled Applications Act, which mandates a divestment of TikTok and its algorithm. Furthermore, Chinese officials may not approve of such an arrangement, adding another layer of complexity to the situation.
If no deal is finalized by the deadline, former President Donald Trump has indicated that the extension could be prolonged again. Although the legality of another extension is uncertain, it’s likely that TikTok will continue operating without major disruptions, as it did in January 2025 when the ban law initially came into effect. Despite the looming deadline, it seems that TikTok may not face immediate closure, with the possibility of further negotiations or extensions.
