The TikTok ban deadline in the United States is approaching on April 5, creating uncertainty around the platform's future and potential deals with US-based entities.

ByteDance, TikTok's Chinese parent company, has consistently resisted selling its US operations, particularly protecting its valuable algorithms. While US investors are pushing for a deal, ByteDance's desire to maintain a stake in US operations contradicts the legislation's requirements.

The federal law mandates that TikTok must be sold to US-based, non-Chinese entities to continue operating in the United States. This legislation, driven by national security concerns, was temporarily extended by 75 days through an executive order.

Oracle remains ByteDance's preferred partner for a potential deal structure. However, recent events, such as China's criticism of CK Hutchison's Panama Canal port sale to BlackRock, suggest the Chinese government's reluctance to approve US-related deals.

The uncertainty has impacted TikTok's advertising landscape:

• Ad prices have decreased as some advertisers withdraw
• Some agencies recommend pausing TikTok spending
• Advertisers are shifting to alternative platforms like Meta's Reels, YouTube Shorts, and Snap Commercials
• TikTok claims nearly 100% of previous US brands have returned, though overall spending has declined

While TikTok's competitors actively court displaced advertisers and creators, the platform's fate hinges on ByteDance's willingness to negotiate a deal that satisfies both US security concerns and Chinese interests within the next two weeks.

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