TikTok Ban Looms in Two Weeks as US-China Deal Remains Uncertain
The US TikTok ban deadline approaches in two weeks, raising questions about ByteDance's willingness to strike a deal that would keep the platform operational in the United States.
TikTok logo amid ban deadline illustration
ByteDance faces mounting pressure as US investors push for a deal before the April 5 deadline. While existing ByteDance backers seek additional stakes in TikTok's US operations, the Chinese parent company insists on maintaining significant control—effectively defeating the purpose of a US spinoff.
The ban, implemented through federal legislation over national security concerns, requires Chinese ownership to sell TikTok's US operations to American entities. Though initially enacted in January, an executive order extended the deadline by 75 days.
Oracle remains ByteDance's preferred partner for a potential deal structure. However, both ByteDance and the Chinese government have shown reluctance to relinquish control over the platform's valuable algorithms.
Advertising Impact:
- Ad prices have dropped significantly as some advertisers withdraw
- TikTok claims "almost 100%" of previous US brands have returned
- Many agencies report reduced spending and client hesitancy
- Competitors like Meta's Reels, YouTube Shorts, and Snap are benefiting from shifted ad budgets
The platform's uncertain future has prompted agencies to explore alternative social media platforms that don't face potential bans. This shift mirrors recent Chinese government criticism of international business deals, as seen in their response to CK Hutchison's Panama Canal port sale to BlackRock, which they labeled a "betrayal of China."
Charlie Sloth performing with orchestra
As the deadline approaches, TikTok's competitors are actively positioning themselves to capture displaced users, creators, and advertising dollars, regardless of whether a last-minute deal materializes.