Time is running out for TikTok to find a suitable buyer for their US operations as they are yet again facing another possible ban. However, President Donald Trump reportedly has a proposal to establish a new company called "TikTok America."
Instead of having different companies owning TikTok for themselves, it would be mostly made up by American investors as well as ByteDance owning a stake.
Trump is already reviewing the last proposals that were sent to the White House for its US sale, with many interested in buying TikTok or are rumored to be competing against other investors to purchase the troubled Chinese social media platform.
'TikTok America' Is a New Company Trump Is Proposing
The Information shared a new report which claims that Trump has another plan to save the controversial Chinese social media, and this is by establishing a new company called "TikTok America." The new company would not have Trump participating in its ownership or stake, but the President will act as a "broker" that will open up deals for TikTok's sale.
This latest development came from a source who is "close to the discussions" and claimed that the US president will later announce the plans behind this new company soon.
However, it remains unknown if the Trump administration has received approval for this new company and for brokering a deal from the Chinese government, said the report.
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Will TikTok America Save the Real TikTok Platform?
The TikTok America proposal reportedly centers on having 50% ownership spread out to new US investors, which would license the TikTok algorithm from ByteDance. Moreover, existing investors in ByteDance would still retain their status but would only be given one-third stake in the new company.
Lastly, ByteDance would also retain a 19.9% stake should TikTok America push through.
That being said, the Foreign Adversary law requires TikTok to be fully owned by a US entity, company, or stakeholder, which differs from Trump's proposal.
The Interested TikTok US Buyers
Over the past months, TikTok has faced a roller coaster of events as it was initially forced to shut down and be delisted from app marketplaces like Apple, Google, and more, only to be reinstated after several hours. The Foreign Adversary Act is still in effect and haunting TikTok's US operations, and despite President Trump's support, he could only delay the inevitable sale.
Since its return, there have been massive declarations from interested parties wanting to buy TikTok, fulfill its US operations, and skirt the law, with one of the earliest to confirm their bid is the current top YouTuber MrBeast, along with a handful of other investors.
Amidst this time, there were also rumors about renowned tech mogul and billionaire, Elon Musk, being the preferred buyer of the Chinese officials from ByteDance, but so far, there have been no comments from the executive himself.
AI startup Perplexity AI is also interested in buying TikTok and has already sent its bid to purchase the platform. The main focus of Perplexity is to integrate TikTok into its search engine, and what the company has in mind is having a three-way ownership among itself, the US government, and ByteDance.
