US President-elect Donald Trump announced on Saturday that he would “most likely” grant TikTok a 90-day reprieve from a potential ban after he takes office on Monday. With 170 million American users awaiting news, Trump told NBC that the extension is "appropriate" and indicated he would likely announce it on Monday, AP reported.
TikTok, the Chinese-owned app that has captivated nearly half of all Americans, announced on Friday it will go dark in the U.S. on Sunday unless the Biden administration assures companies like Apple and Google they won’t face enforcement actions when a ban takes effect. Following a Supreme Court ruling on Friday, TikTok must sever ties with its China-based parent, ByteDance, or shut down its U.S. operations to address national security concerns, as reported by the Associated Press.
The White House dismissed TikTok's Friday comment as a stunt, reiterating on Saturday that it was up to the incoming Trump administration to take action, increasing the likelihood of a shutdown on Sunday.
“We see no reason for TikTok or other companies to take actions in the next few days before the Trump administration takes office on Monday,” press secretary Karine Jean-Pierre said in a statement.
It's not clear if TikTok has met the high legal bar to win a 90-day reprieve from Trump -- which requires having binding agreements in place to enable ByteDance to complete a sale of TikTok by mid-April.
The Chinese embassy in Washington on Friday accused the US of using unfair state power to suppress TikTok. “China will take all necessary measures to resolutely safeguard its legitimate rights and interests,” a spokesperson said.
Users on the app were saying their goodbyes, some filming themselves frantically scrolling or sharing final secrets with their followers ahead of the ban.
The Supreme Court unanimously upheld the TikTok ban on Friday, citing national security concerns. Without a formal decision from President Biden to invoke a 90-day delay, companies providing services to TikTok, including Apple, Google, and Oracle, could face significant financial risks. While experts suggest Trump could direct the Justice Department to "deprioritize" enforcement, it remains unclear if this would offer enough legal protection for app store owners and service providers.
“Does anyone know if the TikTok ban goes into effect on Sunday or if we have all of Sunday to like brain rot still? I need to plan accordingly,” fitness influencer Britany Williams said in a video to her 64,000 followers.
Trump tried to force the divestment of TikTok in 2020 and vowed to ban it but was blocked by U.S. courts.
As uncertainty looms over TikTok’s future, mostly younger users have flocked to alternatives like China-based RedNote, while rivals Meta and Snap have seen their stock prices rise as investors anticipate a shift in users and advertising revenue.
Marketing firms dependent on TikTok are scrambling to create contingency plans, with one executive describing the situation as a "hair on fire" moment. Despite the turmoil, there are indications that TikTok could make a comeback under President Trump, who has expressed interest in pursuing a “political resolution” and previously urged the Supreme Court to pause the ban's implementation.
TikTok CEO Shou Zi Chew plans to attend the U.S. presidential inauguration and join a rally with Donald Trump on Sunday, according to a source. Meanwhile, suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in acquiring the fast-growing app, valued by analysts at up to $50 billion.
Media reports suggest Beijing has discussed selling TikTok's U.S. operations to Elon Musk, a billionaire and Trump ally, though the company has denied such claims, AP reported.
US search engine startup Perplexity AI submitted a bid on Saturday to ByteDance for Perplexity to merge with TikTok U.S., a source familiar with the company's plans told Reuters. Perplexity would merge with TikTok U.S. and create a new entity by combining the merged company with New Capital Partners, the person added.
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