TikTok sale in limbo as US deadline nears amid uncertain prospects
A high-profile investor group, including Frank McCourt, awaits a decision as Washington's sale deadline stretches and security concerns persist.
TikTok's U.S. operations remain in limbo as the latest deadline for ByteDance to divest or face a ban approaches. The date has been extended multiple times under an executive-order framework, with the current target set for January 23, 2026. The extension comes as lawmakers and the executive branch continue to press ByteDance to sever its ties with the platform for American users.
Legislation passed by Congress in 2024 requires ByteDance to sell or shutter TikTok for U.S. users. President Joe Biden signed the measure, and the Supreme Court upheld it in early 2025, reinforcing the government’s authority to require a sale or shutdown if ByteDance remains under Chinese control. TikTok and ByteDance have asserted that those national-security concerns are unfounded, while U.S. officials have maintained broad access to data and governance as potential risks that warrant the remedy of a sale or ban.
The current deadline block comes amid a broader negotiation landscape that has included the Trump administration signaling that a sale could be formalized with the involvement of sophisticated U.S. investors. Trump previously suggested discussions would culminate in a meeting with Chinese President Xi Jinping, though no deal was announced and ByteDance has not confirmed any approval from Beijing.
According to BBC News, a billionaire investor group led by Frank McCourt remains in limbo as the sale prospect drifts toward the 2026 target. McCourt told BBC News that he and his partners have raised the capital to buy TikTok's U.S. operations but are waiting for a decision. "We're just standing by and waiting to see what happens," he said. "But if the moment arrives, we're prepared to move forward... we've raised the capital to buy it - we'll see."
McCourt is part of a broader network of backers linked to the potential bid, including Reddit co-founder Alexis Ohanian and Canadian investor Kevin O'Leary. He has described a plan to operate TikTok without any Chinese technology, including its powerful recommendation algorithm, and noted that his Project Liberty has developed other technology that could be used instead. The group’s posture reflects a preference for a U.S.-controlled framework that complies with the law.
The situation remains fluid as ByteDance and Beijing have not publicly approved any sale, and U.S. officials have not signaled a final path forward. The law’s reach and the potential implications for foreign-owned apps in the technology and AI space continue to draw attention from policymakers and tech watchers alike. Analysts caution that the path ahead is unlikely to be clear until a deal—not just an extension or a shutdown—emerges from the ongoing process.
"My hope would be that whatever happens, that it is shut down or sold, and lands in the hands of people that comply with the law," McCourt told BBC News. The unfolding dynamic underscores the U.S. government’s willingness to pursue remedies on data security and governance, even as investors explore alternatives that could maintain access to a popular platform for American users if a compliant structure is put in place.
As the deadline approaches, stakeholders stress the importance of a transparent process that addresses national-security concerns while considering the viable pathways for continuity, given the app's widespread user base and economic footprint. The outcome could shape how policymakers approach foreign ownership and AI-enabled services in an era of rising scrutiny over data use and algorithmic influence.