April 5 is approaching inexorably, and although Donald Trump has repeatedly stated that he may extend the delay in the ban on TikTok in the US, this does not mean that he will not take action in finding potential buyers. According to the US President, there are already four such options, and all of them are acceptable to the US authorities.
Image source: Unsplash, May Gauthier
The law banning TikTok in the US was supposed to go into effect on January 19, the day before Donald Trump’s inauguration. After several hours of disruptions, the social network received a 75-day extension until April 5 as a result of the new president’s accession to power in the US, at his initiative, to find buyers for its American assets. During another briefing on board a government jet, President Trump told reporters that a deal to “land” TikTok’s American business could soon be announced: “We’re dealing with four different groups, many want to buy, all four are good.”
Some experts estimate the capitalization of the American segment of TikTok at $50 billion, so few individual investors can afford the corresponding deal. Most likely, the contenders are now segmented into several consortiums that unite investors based on similar strategic views on the further use of this asset. The deal still needs to be approved by the Chinese side, since TikTok’s recommendation asset is of certain value, and according to Chinese laws, it cannot be transferred abroad without the approval of the PRC authorities.