The popular short-form video app TikTok could be banned in the United States as early as January 19, unless its China-based parent company, ByteDance, divests the platform or shuts down U.S. operations. The ban, mandated by a federal law, has triggered uncertainty and speculation as potential buyers and legal challenges swirl.

Valuation and Algorithm: The Core Challenges

TikTok’s valuation has been a focal point of discussions. Analyst Dan Ives of Wedbush estimates the platform is worth “well north of $100 billion,” and up to $200 billion if its proprietary algorithm is included. Without the algorithm, however, the valuation could drop to $40 billion or $50 billion.

The algorithm, considered TikTok’s “secret sauce,” is central to its global success and user engagement. ByteDance and its attorneys argue that selling TikTok without the algorithm would render the U.S. version of the app disconnected from its global operations. Additionally, Chinese authorities are unlikely to approve the sale of the algorithm, making divestment increasingly complex.

U.S. officials have raised concerns over the algorithm’s potential for manipulation by Chinese authorities, who could influence content on the platform undetected.

Potential Buyers Emerge Amid Uncertainty

Several high-profile individuals and groups have expressed interest in acquiring TikTok. Billionaire Frank McCourt, along with his internet advocacy group, has submitted a proposal, promising to restructure the platform and enhance transparency through an open-source protocol. “It’s about giving people more control over their digital identities and data,” McCourt said.

Former Treasury Secretary Steven Mnuchin has also announced efforts to form an investor group to purchase TikTok, though details remain sparse. Mnuchin previously helped broker a 2020 deal involving Oracle and Walmart, which aimed to address national security concerns but ultimately fell through.

Other potential buyers include Tesla CEO Elon Musk, investor Kevin O’Leary, former Blizzard-Activision CEO Bobby Kotick, and YouTube personality Jimmy Donaldson, known as MrBeast. However, the seriousness and feasibility of these bids remain unclear.

Supreme Court and Political Intervention

As the deadline nears, TikTok’s fate may hinge on the Supreme Court, which heard oral arguments last week on the legality of the ban. A decision is expected within days.

Meanwhile, President-elect Donald Trump, set to take office on January 20, has asked the court to pause the ban to allow his administration to pursue a political resolution. Trump has pledged to “save TikTok” but has yet to outline a detailed plan.

The Justice Department under Trump’s administration will be tasked with enforcing the ban, should it take effect. Attorney General nominee Pam Bondi declined to comment during a Senate hearing on whether she would uphold the prohibition.

As the clock ticks down, TikTok’s future in the U.S. hangs in the balance, with potential buyers, legal rulings, and political strategies all playing pivotal roles.

UK inflation unexpectedly fell in December, raising expectations that the Bank of England could reduce interest rates in the coming months.

Prices rose by 2.5% in the year to December, down slightly from 2.6% in November. This marks the first decline in inflation in three months, offering a glimmer of relief amid rising living costs. The drop was primarily driven by a fall in hotel prices and smaller-than-usual increases in airfares. Despite this improvement, prices continue to rise faster than the Bank of England’s target of 2%.

The latest figures are seen as a boost for Chancellor Rachel Reeves, who has faced mounting criticism due to the fall in the pound’s value and government borrowing costs reaching their highest levels in years.

“If it stays like this, we will be on route to slightly more interest rate cuts,” Michael Saunders, a former member of the Bank of England’s monetary policy committee, told the BBC.

Last month, the Bank of England opted to keep interest rates at 4.75% after the UK economy posted no growth between October and December. However, the latest inflation data strengthens the case for a potential reduction to 4.5% in February, according to Ruth Gregory, deputy chief UK economist at Capital Economics.

Increased investor optimism has led to growing bets on an interest rate cut next month, with many also anticipating further reductions by the end of 2025.

Easing price pressures in sectors such as restaurants and hotels helped pull inflation down in December. The Office for National Statistics (ONS) also reported a slower rise in tobacco product prices. However, the positive trends were partially offset by the rising cost of fuel and second-hand cars.

Grant Fitzner, chief economist at the ONS, noted that despite the overall drop in inflation, rising fuel prices and more expensive cars were contributing factors that limited the decline.

Following the release of the inflation figures, UK government borrowing costs fell to their previous week’s levels, and the pound strengthened slightly to $1.22. Debt costs in the UK further eased after US inflation figures showed a larger-than-expected drop in core inflation, despite the headline inflation figure rising.

Chancellor Reeves acknowledged that there was “still work to be done” to help families with the cost of living but pointed to the government’s actions, including protecting workers’ wages from higher taxes and increasing the minimum wage.

However, Shadow Chancellor Mel Stride criticized the government’s economic management, accusing it of stifling growth and calling for Reeves to explain how she plans to address the country’s economic challenges.