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On March 9, 2025, President Donald Trump told reporters that his administration was dealing with “four different groups” about a possible TikTok sale. He said the groups were credible but did not identify any of them. No sale had been agreed by March 10.
That statement was an early snapshot of a dispute that later produced a U.S.-controlled joint venture, TikTok USDS, reported as closing on January 22, 2026. The eventual arrangement was not a simple purchase of TikTok’s global business by one of four disclosed bidders.
Why TikTok faced a forced divestiture
Congress enacted the Protecting Americans from Foreign Adversary Controlled Applications Act in April 2024. It required TikTok’s China-based parent, ByteDance, to complete a qualifying divestiture of its U.S. operations or face restrictions that could block the app from U.S. distribution and hosting. The law took effect on January 19, 2025.
U.S. officials and lawmakers said ByteDance’s ownership created national-security concerns involving potential access to American user data and influence over recommendation systems. TikTok and ByteDance rejected allegations that they improperly provide data to the Chinese government. Those security allegations were the government’s stated rationale, not an established finding that ByteDance had transferred U.S. user data to Beijing.
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On January 20, Trump ordered the Justice Department not to enforce the statute for 75 days, moving the practical enforcement deadline to April 5. The order delayed enforcement; it did not repeal the law. On April 4, the administration extended the delay through June 19, 2025.
Read the January 20 executive order and the April 4 extension.
What Trump’s “four groups” comment established—and what it did not
Trump’s comments showed that the administration was discussing potential transaction structures with four unnamed groups. They did not establish four formally disclosed bids, a signed agreement, or even that the four groups were the same parties mentioned in news reports.
The administration was not TikTok’s owner or ordinary seller. ByteDance owned the business. The White House controlled enforcement policy and was trying to shape a transaction that would satisfy the divestiture law while keeping the service available in the United States.
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The original March 10 report is available from TechCrunch.
Who was publicly linked to a possible deal?
Several companies, investors and consortia were publicly reported as interested. The available reporting did not identify which, if any, were Trump’s four groups.
| Party | How it was described in contemporaneous reporting | What can safely be concluded |
|---|---|---|
| Frank McCourt’s “People’s Bid” | A proposal backed by Reddit co-founder Alexis Ohanian and investor Kevin O’Leary | Publicly reported proposal, not confirmed as one of Trump’s four groups |
| Jesse Tinsley-led group | A consortium led by technology entrepreneur Jesse Tinsley | Reported interest; no disclosed match to Trump’s list |
| Perplexity AI | Proposed combining its business with TikTok’s U.S. operations | Reported proposal, not a confirmed completed bid |
| Microsoft | Linked to TikTok in earlier negotiations | Historical reported interest; not identified by the administration as a buyer |
| Oracle | Frequently discussed as a possible technology or operating partner | Later became one of the reported managing investors in TikTok USDS, but that does not prove it was one of the March four |
| Bobby Kotick | Former Activision Blizzard chief executive associated with a potential group | Reported interest, with no public confirmation of a deal |
| Amazon | Reported later as a possible bidder before the April 2025 deadline | Later-reported interest, not a disclosed member of Trump’s four |
“Sale” was convenient shorthand. The legal issue concerned removing U.S. operations from foreign-adversary control, so a qualifying joint venture, restructuring or other divestiture could satisfy the statute without transferring every worldwide TikTok asset.
Why negotiations were unusually difficult
ByteDance and Chinese approval
ByteDance remained central because it owned TikTok and key corporate and technical assets. Chinese export-control rules could affect any transfer of the recommendation technology, making approval from Chinese authorities a practical risk.
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The recommendation algorithm
The algorithm was more consequential than the app’s name or U.S. user accounts. A buyer could acquire U.S. operations without receiving unrestricted ownership of ByteDance’s global recommendation system. Later reporting indicated that the eventual structure kept the algorithm tied to licensing or other continuing arrangements rather than documenting a simple, unrestricted transfer of all global algorithm assets. Axios reported on the algorithm issue.
Valuation and continuity
TikTok’s large U.S. audience and advertising business supported a substantial valuation, but legal uncertainty and limits on the algorithm complicated pricing. Any buyer also had to keep creators, advertisers, moderation, cloud infrastructure and user accounts operating through a change in ownership.
Security and legal risk
A transaction had to demonstrate that ByteDance no longer controlled the U.S. business in the way prohibited by the statute. Trump’s enforcement delays also prompted questions about whether the executive branch could decline to enforce a law enacted by Congress.
How the situation changed after March 2025
- January 19, 2025: The divest-or-restrictions law took effect.
- January 20, 2025: Trump directed a 75-day enforcement delay.
- March 9–10, 2025: Trump said four unnamed groups were in talks; no identities or agreement were disclosed.
- April 4, 2025: The administration extended the enforcement delay through June 19.
- September 2025: The White House described a framework in which ByteDance would hold less than 20%, select one of seven directors and have no role on the security committee. The administration characterized the structure as a qualified divestiture. See the White House fact sheet and executive order.
- January 22, 2026: Reuters reported that the U.S. joint venture, TikTok USDS, closed with Oracle, Silver Lake and Abu Dhabi-based MGX as the three lead investors, each holding 15%; ByteDance retained less than 20%. Reuters’ closing report described the transaction.
What the final arrangement means
The reported closing was a U.S.-controlled joint venture, not a straightforward federal acquisition and not a disclosed sale to one of the four groups Trump mentioned. ByteDance retained a minority stake and remained connected to technology arrangements, while U.S.-based investors and technology partners controlled the new entity.
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The White House said the structure met the law’s qualified-divestiture requirement. Reuters reported that Americans held six of seven board seats, with ByteDance choosing one director. That board structure was reported by Reuters. A separate Reuters report covered the administration’s certification of the plan: Trump signs order declaring TikTok sale plan meets U.S. requirements.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What remains disputed
The closing did not end every legal or policy question. Critics argued that the joint venture might not satisfy the 2024 statute, particularly if ByteDance continued to influence or supply the recommendation technology. A March 2026 Reuters report described litigation challenging the administration’s approval; those claims should be treated as allegations unless and until a court resolves them.
The central unresolved issues are the precise ownership and licensing of the algorithm, the extent of ByteDance’s operational influence, and whether the administration’s interpretation of “qualified divestiture” survives judicial review. The eventual structure addressed the U.S. government’s stated security concerns in its view, but it did not settle the broader national-security debate.
Bottom line
Trump’s March 2025 statement was accurate but incomplete: he said four unnamed groups were in talks, not that four identified bidders had submitted offers or that a sale was imminent. The negotiations eventually led to a reported January 2026 closing of TikTok USDS, a U.S.-controlled joint venture backed by Oracle, Silver Lake and MGX, with ByteDance retaining a minority stake. The outcome was a negotiated divestiture structure—not a simple, fully disclosed sale of TikTok’s worldwide business.
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Frequently Asked Questions
Who were the four groups Trump mentioned?
Trump did not identify them. Publicly reported interested parties included Frank McCourt’s People’s Bid, a Jesse Tinsley-led group, Perplexity AI, Microsoft, Oracle, Bobby Kotick and Amazon, but reporting did not establish which four Trump meant.
Was TikTok already sold on March 10, 2025?
No. The administration was discussing possible structures, and no signed sale had been publicly established at that time.
Did the final deal make TikTok fully American-owned?
No. TikTok USDS was reported as U.S.-controlled, but ByteDance retained less than 20% and remained tied to technology arrangements.
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