TikTok Ban Looms, Trump Signals Likely Extension to Save Platform

Us Central Desk : With a U.S. ban on TikTok just hours away, President-elect Donald Trump suggested in an interview with NBC News that he is “most likely” to grant a 90-day extension, potentially allowing the video-sharing app to remain operational beyond Sunday.

The looming ban, tied to a law requiring TikTok’s parent company, ByteDance, to sell its U.S. operations to an approved buyer, prohibits mobile app stores and internet hosting services from distributing TikTok to U.S. users. While the Biden administration reaffirmed on Saturday that enforcing the law falls under Trump’s responsibility after his Monday inauguration, Trump has pledged to “save” the app.

Potential Deals in Play

ByteDance has faced challenges meeting the law’s demands, but there may still be hope. Artificial intelligence startup Perplexity AI has proposed merging with TikTok’s U.S. business, creating a new entity with other investors while allowing ByteDance shareholders to retain their stakes. This deal would exclude ByteDance’s proprietary algorithm, which powers TikTok’s content recommendations, requiring a costly rebuild. The proposed valuation of TikTok without the algorithm is said to exceed $50 billion.

Additionally, a consortium led by investor Kevin O’Leary and billionaire Frank McCourt has reportedly offered ByteDance $20 billion in cash for TikTok. Despite these offers, ByteDance has repeatedly stated it will not sell.

TikTok CEO Shou Zi Chew is expected to attend Trump’s inauguration with prime seating, a gesture that could signal ongoing negotiations.

Legal and Operational Uncertainty

On Friday, the U.S. Supreme Court upheld the federal law banning TikTok unless ByteDance divests its U.S. holdings, rejecting Trump’s request to delay enforcement. Critics, including TikTok and its users, argue the law violates the First Amendment, while the Biden administration defended it as necessary for national security.

TikTok has sought assurances from U.S. officials to prevent fines for companies like Google and Apple if they continue offering the app, but the lack of a definitive statement means TikTok could “go dark” on Sunday.

With time running out, Trump’s decision to grant an extension could provide a temporary lifeline for the app while the search for a long-term solution continues.

corporatenews24, Jubair