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President-elect Donald Trump stated he would "most likely" grant TikTok a 90-day reprieve from a potential U.S. ban after taking office Monday. The Chinese-owned app, with 170 million American users, faces shutdown Sunday unless parent company ByteDance cuts ties with China to address national security concerns.
On Friday, the Supreme Court upheld a law mandating TikTok's compliance, intensifying user anxiety. Trump indicated he might announce the extension Monday, pending agreements allowing ByteDance to divest TikTok by mid-April. Meanwhile, the Biden administration has not committed to delaying the ban, leaving Apple, Google, and Oracle uncertain about their liability in continuing services to TikTok.
TikTok, a cultural powerhouse that supports small businesses, hasn't commented on the situation. The Chinese embassy accused the U.S. of unfairly targeting the app, vowing to protect its interests. Users flooded TikTok with farewell videos as rivals Meta and Snap saw stock gains, expecting new users and ad revenue.
Despite legal challenges in 2020, Trump has signaled a willingness to pursue a political resolution. TikTok CEO Shou Zi Chew plans to attend the inauguration, potentially signaling negotiations. ByteDance, backed by major investors like BlackRock, has received interest from suitors, including Elon Musk, though the company denies sale rumors.
Experts remain unsure if delaying enforcement or reprioritizing prosecution will shield TikTok's partners. Amid uncertainty, marketing firms reliant on TikTok scrambled for alternatives. A new bid from Perplexity AI suggests merging TikTok U.S. operations to create a fresh entity, adding another twist to the saga.
For now, TikTok users and companies await clarity on whether the app will survive in the U.S. market.
