TikTok Sale Process Faces Complexities And Uncertain Outcome

President Donald Trump on Sunday said four bidders are interested in acquiring TikTok, after indicating he may extend the 75-day deadline for a deal.

Trump told reports aboard Air Force One his administration is “dealing with four different groups” and that “there could be” a deal soon. The original deadline for a sale of the social media platform to a U.S. company from Chinese parent company ByteDance is April 5.

Seth Schachner, Founder and Managing Director of Strat Americas with a background at Sony, Microsoft, and Liberty Media, says there are two key insights about the sale that aren’t getting enough attention.

“ByteDance already has U.S. owners like Blackrock and General Atlantic, so a sale to a U.S. interest might just be a ‘recapitalization’ and hence not a dramatic transition,” Schachner says.

Furthermore, any U.S. buyer would need TikTok to cooperate, he says.

“Some fear TikTok’s team will not cooperate if a U.S. buyer does succeed, so some may be lying low for now,” Schachner says. Nevertheless, he believes there a some “dark horses” in the pool of potential buyers.