TikTok US Ban Looms in Two Weeks as ByteDance Deal Remains Uncertain
ByteDance faces mounting pressure as TikTok's US ban deadline approaches on April 5, with key stakeholders scrambling to secure the platform's future in the American market.
TikTok logo amid ban deadline illustration
US investors are actively pursuing ownership stakes in TikTok's US operations, while ByteDance maintains its stance against relinquishing control of its proprietary algorithms. The company appears to favor a deal structure involving Oracle but remains hesitant to cede meaningful control.
The Chinese government's recent criticism of CK Hutchison's port business sale to BlackRock, labeling it a "betrayal of China," signals Beijing's reluctance to approve any US-based deal for TikTok.
The uncertainty has significantly impacted TikTok's advertising landscape:
- Ad prices have dropped as advertisers reduce spending
- Some brands have paused their TikTok campaigns
- Competitors like Meta's Reels, YouTube Shorts, and Snap are benefiting from shifted ad budgets
- Agency Wpromote reports clients are exploring alternative platforms
Despite TikTok's claims of retaining "almost 100%" of previous advertisers, multiple agencies report decreased spending compared to last year. The platform's competitors are actively courting creators and advertisers who may be seeking more stable alternatives.
If no deal is reached by the April 5 deadline, TikTok faces another potential ban in the United States, following January's brief shutdown that was extended by a 75-day executive order.
Charlie Sloth performing with orchestra
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