U.S. President Donald Trump claims that he has found a group of “very wealthy people” interested in buying the Chinese short-form video app TikTok. He made these remarks during an interview on Fox News (FOX) on Sunday, June 29. Trump also stated that he would reveal the identities of the investors within two weeks and that the potential deal would require the approval of Chinese President Xi Jinping. Trump believes that Xi would most likely approve the deal.
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Meanwhile, TikTok owner ByteDance would also have to approve any potential deal to divest TikTok’s U.S. operations. Notably, the sale or ban of TikTok in the U.S. has already been delayed three times during Trump’s administration. The president has a soft spot for the app because he believes that it played an instrumental role in winning over younger voters during his presidential campaign.
TikTok Awaits its Fate in the U.S.
According to Trump’s most recent extension, TikTok could see a deal reached by September 17. Initial discussions about the deal involved selling a majority stake of TikTok’s U.S. assets to an American investor. A deal could have been reached in early spring, but the U.S.’ imposition of stringent reciprocal tariffs on China led to the latter’s disapproval.
The White House is concerned that TikTok’s Chinese ownership could put Americans personal data at risk. As a result, the Biden administration signed into law the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which took effect on January 19, 2025. Following the law’s enactment, app stores and internet service providers would have been required to stop hosting and selling TikTok. However, Trump delayed the enforcement of the law and also postponed TikTok’s shutdown in the U.S. through executive orders.
Notably, TikTok’s U.S. operations have drawn interest from large investors, such as Andreessen Horowitz, Oracle’s (ORCL) Larry Ellison, Blackstone (BX), Silver Lake, and other private equity firms. One of the important factors being discussed in TikTok’s sale is the algorithm the company uses to determine what users see on their feeds. To fully abide by the requirements of Biden’s order, the algorithm must be transferred to the new U.S. owner. However, it remains unclear whether China or ByteDance are willing to part with it.
What Are the Best Social Media Stocks to Invest in?
We used the TipRanks Stock Comparison Tool for Top Social Media Stocks to determine which stocks are currently favored by analysts. Investors can choose to invest in any of these stocks after thorough research.
Currently, Pinterest (PINS) and Meta Platforms (META) have earned Wall Street’s Strong Buy consensus rating, with PINS stock reflecting a higher upside potential in the next 12 months.
