With just 59 days remaining before a critical deadline, TikTok’s future in the U.S. remains uncertain as efforts to sell the app’s American operations face significant setbacks. Under the “Protecting Americans from Foreign Adversary Controlled Applications Act,” TikTok must secure a U.S.-based partner by September 17 or risk being banned in the country. Despite previous assurances from former President Donald Trump about an impending deal, the app currently operates in violation of U.S. law, with its continued presence reliant on presidential discretion.
Recent developments have complicated the sale process. Reuters reports that private equity firm Blackstone, once part of a consortium assembled to acquire TikTok’s U.S. business, has pulled out. The consortium – led by Susquehanna International Group and General Atlantic and including other investors such as KKR, Andreessen Horowitz, and Oracle – had proposed a structure where U.S. investors would hold an 80% stake, leaving ByteDance with a minority share.
Blackstone’s withdrawal raises doubts about the consortium’s ability to reorganize and meet regulatory demands within the tight timeframe. Compounding the challenge are escalating trade tensions between the U.S. and China, with new tariffs on Chinese goods further complicating negotiations. This has a direct impact on TikTok’s ability to both grow and continue to function with a U.S. audience, especially given that there doesn’t seem to be an actual defined “bad outcome” if the platform fails to be sold beyond assumptions.
While an outright ban remains possible, industry observers anticipate another extension of the deadline to allow more time for negotiations, prolonging uncertainty for TikTok’s U.S. user base and creators.
