As the deadline for TikTok’s potential sale in the US approaches, the list of potential buyers continues to grow. The social media giant faces a shutdown unless it sells to an American company by April 5. Despite the uncertainty, many believe a deal is imminent, with Vice President JD Vance recently stating that the Trump administration is set to announce a deal ahead of the deadline.
The race to acquire TikTok has attracted a diverse range of bidders, from tech giants to an OnlyFans founder. Amazon has made a last-minute bid, sending a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick expressing interest. Other late-stage bidders include AppLovin, an app marketing and analytics company, and a consortium led by OnlyFans founder Tim Stokely. Perplexity, an AI search startup backed by Amazon’s Jeff Bezos, is another confirmed bidder. Frank McCourt, founder of Project Liberty, is also in the mix, proposing to scrap the current algorithm in favor of a more open version. Other potential investors include Reddit co-founder Alexis Ohanian and Canadian businessman Kevin O’Leary.
A key point of contention is TikTok’s algorithm, which is central to its success. The algorithm, which decides what content users see, is considered a major asset. “TikTok without its algorithm is like Harry Potter without his wand – it’s simply not as powerful,” said Kelsey Chickering, principal analyst at Forrester Research. The Chinese government is expected to block any transaction involving the algorithm.
The TikTok algorithm is a complex system that recommends content based on user interactions, video information, and device settings. It prioritizes engagement, such as likes, shares, saves, and comments, to determine what content appears on users’ For You pages. This personalized approach has been a significant factor in TikTok’s rapid growth and user engagement.
Despite the uncertainty, many experts believe TikTok will not go offline in the US. Kelsey Chickering notes that “all signs point to a deal or another extension”. The potential buyers and their varied interests highlight the strategic value of TikTok, not just as a social media platform but also as a driver of e-commerce and digital trends.
TikTok has emerged as a game-changing platform in the e-commerce landscape. With over 1 billion active users, TikTok has become a major player in digital retail. The platform’s native shopping features, such as live shopping events, product showcase videos, and integrated checkout processes, are revolutionizing how consumers discover and purchase products. TikTok Shop is dictating global shopping habits, with categories such as beauty, fashion, and electronics leading sales.
As the deadline approaches, the future of TikTok in the US remains uncertain. However, the sheer number of interested parties and the strategic importance of the platform suggest that a resolution is likely. Whether it involves a sale, an extension, or a new arrangement, the outcome will have significant implications for the future of social media and digital commerce.
