TikTok in limbo: The saga of divestment, bans and extensions

When TikTok briefly went dark on American smartphones on a January night this year, millions of users feared it was the end of their daily scroll.

But within hours, the app flickered back to life — rescued by an executive order from President Donald Trump. It was not the first such incident, and it would not be the last. Over the months that followed, TikTok's future in the US remained suspended in a strange purgatory: banned, but not gone; sold, but not yet bought.

What began as a national security concern has morphed into a complex web of legal battles, international negotiations, political theatre and technological uncertainty. And with each passing extension, the saga grows more tangled.

From dance videos to diplomatic chess

The core concern behind the proposed ban lies in TikTok's Chinese ownership. US lawmakers, both Republican and Democrat, have expressed fears that user data from the platform's 170 million American users could end up in the hands of the Chinese government. 

TikTok's parent company, ByteDance, is based in Beijing, and the Chinese Communist Party's sweeping surveillance laws have raised alarm.

To address these concerns, Congress passed a law in April 2024 requiring ByteDance to divest its US TikTok operations by 19 January 2025. Otherwise, the app would be banned from US app stores and networks. The law also mandated a complete separation from ByteDance's data systems and algorithms, effectively forcing a rebuild of the app's technical backbone.

TikTok fought back with lawsuits, arguing that the law infringed on First Amendment rights and amounted to an unconstitutional seizure. But the US Supreme Court upheld the legislation. As the deadline loomed, TikTok shut down briefly on 18 January.

Then came the first of three executive orders from Trump, extending the divestment deadline — first by 75 days, then another 75, and finally by 90 more. The new deadline is now set for 17 September.

A buyer without a deal

President Trump has claimed to have a group of "very wealthy people" lined up to purchase TikTok. Names such as Oracle, Microsoft and billionaire Frank McCourt have been floated. Amazon has reportedly made a last-minute offer. Even YouTube star Jimmy Donaldson, aka MrBeast, has expressed interest in joining an investor group.

But any sale needs approval from Beijing. China has insisted it would block any deal involving the sale of TikTok's proprietary algorithm — the very feature that makes the app so addictive. 

This complication has reportedly led TikTok to begin developing a new US-specific app, known internally as M2, which is set to launch on 5 September. M2 will not include the original algorithm, raising questions about whether it can retain TikTok's signature appeal.

Caught in the middle

For TikTok's US users, the situation is disorienting. Some have already migrated to platforms like Instagram Reels, YouTube Shorts, or RedNote, a Chinese-owned alternative. 

Small businesses that rely on TikTok for visibility and marketing remain in limbo, unsure if their digital storefront will vanish overnight.

Legally, TikTok's continued operation is precarious. The extensions granted by Trump fall outside the framework of the law, which permitted only one 90-day delay. Critics say the president is effectively ignoring legislation and judicial rulings. 

The core concern behind the proposed ban lies in TikTok's Chinese ownership. US lawmakers, both Republican and Democrat, have expressed fears that user data from the platform's 170 million American users could end up in the hands of the Chinese government.

Tech companies like Apple and Google, which host the app in their app stores, are relying on assurances from the US Attorney General that they will not face penalties for keeping TikTok online.

The uncertainty also raises enforcement questions. Without a clear mechanism to force action, the US Congress can only watch as the executive branch repeatedly pushes the boundaries of its authority. Even critics of the ban acknowledge that without enforcement, the law remains symbolic.

What happens next?

With less than two months remaining until the latest deadline, a sale still seems far from certain. Blackstone, a major private equity firm once considered a frontrunner in the bidding consortium, has withdrawn. China remains silent on whether it will approve any deal.

Beyond TikTok, the case has revived a broader debate about data privacy, foreign tech ownership, and the power of social media platforms. The app that once delivered light-hearted dance trends is now a pawn in the high-stakes game of global politics and digital sovereignty.

Whether TikTok survives or vanishes from US screens, its saga will leave a lasting mark on how governments approach social media in an increasingly fragmented digital world.