With just days to go ahead of the deadline, TikTok finds itself at a critical crossroads that could determine whether the app continues to thrive in the U.S. or face its final shutdown. If ByteDance does not spin off its American operations and/or sell at least 80% of the company to a U.S. owner, TikTok will again be banned in the U.S. on April 5th . Although the deadline is fast approaching, a repeat of January’s brief “blackout” seems unlikely. In a conversation with President Trump last month, he indicated if the deadline was not met, he would simply extend it. The president also announced he was considering lowering newly levied tariff rates on China in an effort to persuade the company to broker a deal that would prevent the ban. Although ByteDance has not publicly confirmed any plans to sell, Oracle, Omnivest Financial, and Perplexity, among others, have publicized their “bids” to purchase the video-sharing app. In mid-March, the president confirmed that his administration was working “with four different groups” for the potential TikTok deal, although he failed to specify which four those were. However, following a recent meeting with top aides on Capitol Hill, many reports suggest that Oracle is the leading contender to head operations of TikTok in the U.S.
Nonetheless, even if one of the parties is chosen by the deadline, there is a high probability a full deal will not be inked by April 5 th . Vice President J.D. Vance has suggested that deals such as the one TikTok and ByteDance are reportedly considering, often take months to close, but that they will likely have “outlines of this thing” by the target date. Additionally, TikTok does not seem to be phased by the looming deadline. The company has committed to be at prominent industry events in the U.S. in the coming months and has continued to plan projects in the U.S. that extend beyond the April 5th deadline, including participating in NewFronts, a prominent digital advertising event held in New York. Ultimately, while the clock ticks down to April 5th , TikTok’s future in the U.S. remains in limbo, with ongoing negotiations and the likelihood of further delays indicating the resolution to this issue is still a work in progress.
We continue to stay abreast of the latest legal developments and have crafted language in our client’s agreements that protect them in case of a future ban. If you find yourself in need of legal assistance in the areas of digital media, intellectual property or advertising law, or you have questions regarding how your business may be impacted by the TikTok ban, please contact our attorneys here.
