TikTok's ban deadline is coming. What happens next?

TikTok's deadline to sell off or cede its US operations is once again approaching. The 75-day extension delaying the enforcement of a nationwide TikTok ban is set to run out Saturday, April 5, unless the company finally reaches an agreement to find a new owner. Who might buy it, and what happens if no deal is reached? Here's the shape of things right now:

Potential buyers

President Donald Trump has suggested that “a deal” is imminent and could be reached before that deadline. What such an agreement will look like is still extremely unclear. A number of interested buyers have come forward, including YouTuber MrBeast, Reddit cofounder Alexis Ohanian and Perplexity AI. Oracle, which almost bought TikTok in 2020 and was a key part of TikTok’s earlier negotiations to address national security concerns, is also in the running.

Depending on which bid wins out, TikTok could end up looking very different. ByteDance, TikTok’s Chinese owner, won’t allow another company to take control of the app’s coveted recommendation algorithm. That means a new owner would have to rebuild TikTok’s central feature. Perplexity AI, for example, has said it would take on this task of reverse-engineering the app's “For You” feed, making it open source and implementing some kind of Community Notes-style fact checking feature. Reddit cofounder Alexis Ohanian, who joined a group of investors known as “Project Liberty,” has hinted at a vision for TikTok that somehow ties in with blockchain technology.

Option 2

There’s also another, potentially less disruptive option on the table. The White House is also considering a deal that would allow TikTok’s existing US investors to “roll over their stakes into a new independent global TikTok company,” according to The New York Times. Under this arrangement, Oracle could also end up overseeing TikTok’s US data while ByteDance hangs onto its algorithm, as the Financial Times reported in March.

This would likely be a smoother transition than a full-on sale that would require a new owner to rebuild a significant part of the app. Aspects of it are also very similar to terms TikTok already agreed to under a previous agreement with Oracle known as Project Texas. However, this sort of deal may also not be entirely legal, as Politico recently pointed out. The Protecting Americans from Foreign Adversary Controlled Applications Act, the law passed by Congress and signed by former President Joe Biden last year, calls for a divestment of TikTok and its algorithm.

It’s also not clear whether Chinese officials would be willing to sign off on such an arrangement, though Trump has suggested he could use the threat of tariffs as negotiating leverage. “We’re dealing with China also on it because they may have something to do with it. And we’ll see how that goes,” Trump told reporters over the weekend.

No deal

So what happens if Trump’s “deal” isn’t finalized by Saturday? The answer, it seems, is… probably nothing. Trump has said he would likely extend the deadline again if the clock runs out on the current extension. (Once again, it's not entirely clear if another extension is legal, but CNN reports that a second extension might be an uphill battle if challenged in court.) In the meantime, TikTok is unlikely to go dark like it (briefly) did in January when the ban law first went into effect.

This article originally appeared on Engadget at https://www.engadget.com/social-media/tiktoks-ban-deadline-is-coming-what-happens-next-162420478.html?src=rss https://www.engadget.com/social-media/tiktoks-ban-deadline-is-coming-what-happens-next-162420478.html?src=rss