US President Donald Trump has announced that he will sign an executive order to extend TikTok’s operations in the United States for an additional 75 days. This decision comes just hours before a significant deadline for the popular video-sharing platform to secure a non-Chinese owner, or risk facing a ban within the US.
With a staggering 170 million American users, TikTok has become a cultural phenomenon, yet it finds itself under scrutiny due to a US law passed overwhelmingly last year. This legislation mandates that TikTok must sever ties with its Chinese parent company, ByteDance, or face being shut down in the US.
“I look forward to working with TikTok and China to close the deal; we certainly don’t want the app to ‘go dark,’” President Trump commented, emphasizing the importance of a resolution.
Driven by national security concerns and a widespread belief that TikTok operates under the influence of the Chinese government, this law took effect on January 19, the day before Trump’s inauguration. In a dramatic turn of events, TikTok temporarily halted its services in the US, disappearing from app stores, much to the disappointment of its millions of users.
In response, the Republican president quickly announced a 75-day reprieve, allowing TikTok to restore its services for existing users and return to app stores by February. As the impending deadline looms, Mr. Trump has often downplayed the perceived risks associated with TikTok, expressing confidence in finding a buyer for the app’s US operations.
Moreover, Trump hinted that TikTok could be part of a broader negotiation with China regarding the tariffs he imposed on Beijing, stating, “As long as they are giving us something that is good—like with TikTok.” He elaborated: “We have a situation with TikTok where China will probably say we’ll approve a deal, but will you do something on the tariffs? The tariffs provide us with significant leverage in negotiations.”
Who Is Interested in Acquiring TikTok?
As discussions progress, reports suggest that the most likely outcome could involve existing US investors in ByteDance converting their stakes into a new, independent global TikTok entity. Additionally, prominent US firms such as Oracle and investment giant Blackstone are rumored to be brought in to decrease the Chinese ownership share.
Much of TikTok’s operations in the US are already managed on Oracle’s servers, and Oracle’s Chairman, Larry Ellison, has been a long-time ally of Trump. Yet, there remains uncertainty about the fate of TikTok’s highly valued algorithm. The New York Times indicated that the new entity might license the algorithm from ByteDance, a move that could contradict the original intention of the law, which is fueled by the belief that the algorithm might be exploited by China to compromise US interests.
Interestingly, Amazon has reportedly made a last-minute bid to buy TikTok, while other initiatives have emerged, such as ‘The People’s Bid for TikTok,’ launched by Frank McCourt’s Project Liberty. The artificial intelligence startup Perplexity has also shown interest, alongside a joint venture with YouTube mega-star MrBeast.
While President Trump initially supported a ban during his first term, he has recently adopted a more favorable stance on TikTok, recognizing its role in attracting young voters during the recent election. Notably, one of his major political benefactors, billionaire Jeff Yass, holds substantial stakes in TikTok’s parent company, ByteDance.
As this situation continues to evolve, all eyes remain on TikTok and the negotiations ahead.
Edited By Ali Musa
Axadle Times International – Monitoring.
