Did TikTok Sell to an American Company? An Update on the Ongoing Saga

Did TikTok Sell to an American Company? The question of whether TikTok, the wildly popular short-video app, sold to an American company has been a hot topic in recent years. The app, owned by the Chinese tech company ByteDance, faced scrutiny from U.S. authorities over concerns regarding national security and data privacy. At the center of the controversy was the potential influence of the Chinese government over ByteDance and its access to TikTok’s vast troves of user data. This led to talks of a sale or partnership with an American company. But what really happened? Let’s dive into the timeline, the key players, and the current state of affairs.

The Background: Why Was TikTok Under Scrutiny?

TikTok’s meteoric rise in popularity caught the attention of U.S. officials, particularly the Trump administration, who expressed concerns about the app’s handling of user data. The primary fear was that the Chinese government could access sensitive personal information of millions of American users through ByteDance.

In August 2020, then-President Donald Trump issued executive orders demanding TikTok either be sold to an American company or face a potential ban in the United States. The orders cited concerns over national security, user data, and the app’s potential influence over public opinion.

The Players Involved in the Potential Sale

Several U.S. companies expressed interest in acquiring TikTok or partnering with the company to resolve the security concerns. Among the key players were:

• Microsoft: Initially seen as the front-runner, Microsoft was in talks to buy TikTok’s U.S. operations but eventually dropped out of the race.
• Oracle: Oracle, a major cloud computing company, emerged as a surprising contender. Rather than a full acquisition, the proposed deal with Oracle involved creating a “trusted technology partnership” to manage TikTok’s data and operations in the U.S.
• Walmart: Walmart joined the Oracle bid, showing interest in TikTok’s e-commerce potential and user engagement.

The Trump Administration’s Deadline

As the deadline for TikTok to either sell its U.S. operations or face a ban loomed, a deal with Oracle and Walmart seemed to be on the table. The proposal involved Oracle acting as TikTok’s “trusted technology provider” in the U.S., ensuring that American user data would be stored securely on U.S. soil, with Walmart playing a role in its e-commerce and advertising business.

Despite these discussions, the sale or transfer of TikTok to an American company never fully materialized under the terms that were initially laid out. By the end of 2020, the urgency surrounding the deal appeared to wane, particularly as the U.S. administration changed hands.

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The Biden Administration’s Approach

When President Joe Biden took office in January 2021, his administration put a temporary halt to the pressure campaign against TikTok while reviewing the security risks associated with the app. Rather than immediately enforcing the previous executive orders, the Biden administration has focused on conducting a broader review of Chinese tech companies operating in the U.S.

The review shifted the focus from an outright sale to potential regulatory measures that could mitigate the risks posed by Chinese apps without requiring a forced sale. As of 2024, there has been no complete sale of TikTok to an American company, and the app continues to operate in the U.S. under ByteDance’s ownership.

Where Are We Now?

As of 2024, TikTok is still owned by ByteDance and operates freely in the United States, but the discussions over its ownership and data security have not entirely disappeared. The Biden administration continues to monitor TikTok’s data practices, and talks of further regulatory action remain ongoing.

However, the deal with Oracle and Walmart—initially framed as a potential solution to the concerns—has not resulted in a full transfer of ownership or operations. Instead, ByteDance has made efforts to store U.S. user data on American servers through partnerships with U.S.-based companies, such as Oracle, to alleviate concerns.

Conclusion: Has TikTok Sold to an American Company?

In short, no, TikTok has not sold to an American company. Despite serious talks and political pressure, the proposed sale or partnership with Oracle and Walmart never fully came to fruition in the way it was originally expected. Instead, TikTok remains under the ownership of ByteDance, although efforts have been made to address U.S. concerns regarding data privacy and security.

As of now, TikTok continues to grow in popularity in the U.S., while the debate over its ownership and security risks persists. The Biden administration has taken a more cautious approach, focusing on long-term solutions rather than immediate actions. For users and businesses relying on the app, TikTok’s future in the U.S. remains stable for the time being, though further developments could arise as regulatory reviews continue.