TikTok’s future remains uncertain for promo businesses after President Donald Trump denied being in discussions with Oracle Chairman Larry Ellison about taking over the social media app.

NPR reported over the weekend that the White House is currently working on a deal for technology giant Oracle and a group of outside investors to take control of TikTok’s global operations.

Under the potential agreement, TikTok’s China-based owner ByteDance would retain a minority stake in the company. Meanwhile, the app’s algorithm, data collection and software updates would be overseen by Oracle, which already provides the foundation of TikTok’s web infrastructure, according to NPR’s source who’s allegedly directly involved in the negotiations.

  • Last year, Oracle warned that a TikTok ban would hurt business, CNBC reported.


However, Trump has denied the report.

“I never spoke to Larry about TikTok,” Trump told reporters. “I’ve spoken to many people about TikTok. There’s great interest in TikTok. And as you know, I have the right to sell it, or close it, depending on what I think is best for the country. So, we’ll make a decision on it in the next 90 days or so.”

Is TikTok Back?

After the Supreme Court upheld the decision that TikTok should be banned for national security reasons, the app went dark on January 19 before re-emerging for American users ahead of Trump signing an executive order on his first day in office that supposedly pauses the ban.

“I am instructing the Attorney General not to take any action to enforce the Act for a period of 75 days from today to allow my Administration an opportunity to determine the appropriate course forward in an orderly way that protects national security while avoiding an abrupt shutdown of a communications platform used by millions of Americans,” Trump’s order states.

  • Although the executive order brought the app back online for existing users, Apple and Google still haven’t made TikTok available for download in their app stores and aren’t processing updates to the app on existing devices.


However, as things stand, Trump’s comments do not seem to actually counter the law that was passed by all three branches of government and upheld by the Supreme Court. The law does allow for a 90-day hold on the ban if a sale of TikTok is underway, but at this moment, that is not the case. Furthermore, his suggestion that an American company own 50% of TikTok also does not seem to satisfy the law as written, unless Congress repeals this.

“The president does not have the ability to override that statute,” Duke University School of Law professor Timothy Meyer told Law360. “What’s fascinating about the executive order is that it is a continued extension of the president’s desire to claim that economic regulation is within the president’s constitutional authority because it implicates national security.”

  • As written, the law states that U.S. service providers that make TikTok available in the U.S. face a penalty of $5,000 for each person who uses the app. With over 170 million TikTok users in the U.S., that fine could top $850 billion.


Ultimately, the legality of Trump’s order may be a moot point. Meyer says it would either take some “creative plaintiff lawyers or adventurous state attorneys general” to hold Trump to account, according to reporting from Law360’s Alex Lawson.

  • The initial law, signed by President Biden in April, cited national security concerns over the Chinese government’s potential to spy on and hoard data from American users. The law also suggested that the video app could slowly influence the American public through the content that it either suppresses or pushes to users.

TikTok’s Impact On Promo

Many small business owners, such as promotional products professionals, use the app to promote their offerings and reach new clients and partners. According to Bhat, TikTok’s ban threatens to disrupt up to $1.25 billion in promotional product sales, with small businesses bearing the brunt.

“TikTok has become an essential tool for engaging audiences, particularly Gen Z and Millennials,” says Meg Erber, director of sales at Proforma – PPAI 100’s No. 3 distributor – and a member of PPAI’s 2024 #Online18. “Even Gen Xers are approximately 20% of TikTok’s users globally. This generation wields significant economic influence, spending over $2.4 trillion annually.”

TikTok has become an essential tool for engaging audiences, particularly Gen Z and Millennials. This generation wields significant economic influence.”

Meg Erber

Director of Sales, Proforma

  • Reporting from Law360’s Jade Martinez-Pogue revealed that Project Liberty, led by Kirland & Ellis, made an offer earlier this month to acquire TikTok, which would allow the app to continue to operate in the United States.
  • Project Liberty said that it would preserve TikTok’s community while protecting the users’ data from foreign threats.

Javier Melendez, national account executive at PPAI 100’s No. 91 distributor Walker-Clay, has leveraged TikTok to create his own brand, drumming up business and generally keeping his name top of mind with clients. In December, he predicted that there is simply too much money on the line for TikTok to resist a sale if it comes to that.


“TikTok is too big a platform to not abide by the conditions the government is now stipulating, so someone will most likely come riding in,” says Melendez. “I would be surprised if they didn’t already have contingency plans in place for this possibility.”

Nick Lateur, vice president of revenue at business service provider Merch.ai, was named the best social media user in promo in the 2024 PPAI #Online18. He says that loss of audience and revenue will hit some promo companies, but it will also have a ripple effect on the speed at which promo trends spread and the communities formed through promo professionals who might otherwise never connect.

“Some promo companies are able to utilize TikTok to shed a unique light on their services and humanize their teams,” Lateur says. “The ban could weaken brand communities and limit real-time trend discovery, making it harder to stay unique and competitive.”

The ban could weaken brand communities and limit real-time trend discovery, making it harder to stay unique and competitive.”

Nick Lateur

VP of Revenue, Merch.ai

Connections, communities and amplifying brand awareness have all been ingredients in TikTok’s promo algorithm, according to Erber. At the moment, she says, no platform is matching that impact, and there will be ramifications if it goes away.

“For small businesses, the impact could be even more devastating,” Erber says. “Many have relied on TikTok’s organic reach as an affordable way to gain visibility and drive sales. While I recognize the security concerns behind the ruling, we can’t ignore the economic consequences for the thousands of businesses and entrepreneurs who depend on TikTok as a primary marketing tool.”

Jade Crider, social media coordinator at Ohio-based distributor Hasseman Marketing, participated in a panel at The PPAI Expo Conference called “Gen Z Speaks: Bridging The Gap For Authentic Connections.” She says that she’s seen firsthand the ways TikTok has fostered community and uplifted small businesses, also confirming that it is an excellent platform to influence the younger generations.

She does, however, suggest that those same younger generations are nimble with their social media preferences.

“If TikTok were to cease operations, users would adapt and migrate to a new platform, and I would shift my attention to whichever platform I believe would have the greatest impact,” Crider says.

If TikTok were to cease operations, users would adapt and migrate to a new platform, and I would shift my attention to whichever platform I believe would have the greatest impact.”

Jade Crider

Social Media Coordinator, Hasseman Marketing

That’s a sentiment shared by Melendez, who reminds the promo community that success with any social platform does not render tried-and-true methods obsolete.

“TikTok’s not the only game in town,” Melendez says. “I am a big proponent of using personalized video in ways beyond just posting every day on TikTok. However, it could also be a voice note, or a handwritten card.”

TikTok’s not the only game in town.”

Javier Melendez

National Account Executive, Walker-Clay

Looking for a silver lining in a potential ban, Lateur also suggests that there’s a temptation for every business to gravitate to the latest social media trend, even if it doesn’t make as much sense for their product, brand or goals.

“Some businesses don’t belong on TikTok, anyway, so the ban may push businesses to re-focus on their strengths, giving them more time to improve existing marketing channels such as websites, email lists or LinkedIn,” Lateur says.

  • Lateur also points out that data security concerns are not unique to the U.S. government. Clients and partners may fear these threats as well. Reinforcing trust in cybersecurity is something any business should consider.