Trump to TikTok’s Rescue: App Restoring Services in the US Amid Ban Uncertainty

TikTok was back online for some users in the United States on Sunday after President-elect Donald Trump announced plans to issue an executive order intended to delay a federal ban on the popular social media platform. The ban, which was originally slated to go into effect that same day, stemmed from concerns regarding TikTok’s parent company, ByteDance, failing to divest its operations to a non-Chinese entity.

TikTok’s Statement Following Trump’s Announcement

In a statement made on X, TikTok confirmed that it was working to restore access for American users. “In agreement with our service providers, TikTok is in the process of restoring service,” the company wrote. They further expressed gratitude towards Trump for providing clarity and assurance to service providers that they would confront no penalties for offering TikTok to over 170 million Americans. This intervention allows over 7 million small businesses, which heavily rely on the platform, to continue their operations.

A Victory for Free Expression

The company referred to the legal update as a triumph for free expression. “This decision is a strong stand for the First Amendment and against arbitrary censorship,” TikTok noted. Additionally, TikTok has pledged to work together with the incoming administration on a “long-term solution” to ensure its operations can continue within the United States.

Trump’s Call to Action

Earlier that day, Trump addressed the TikTok situation on his platform Truth Social, urging companies to support the platform’s ongoing operation. “I’m asking companies not to let TikTok stay dark!” he stated and announced plans for an executive order to follow his inauguration to extend the compliance timeline. Trump reflected on the matter: “I will issue an executive order on Monday to extend the period of time before the law’s prohibitions take effect, so that we can make a deal to protect our national security. The order will also confirm that there will be no liability for any company that helped keep TikTok from going dark before my order.”

The Looming Ban

The uncertain future of TikTok in the U.S. still looms large. The app was reportedly made inaccessible for many U.S. users late Saturday, removed from both Apple and Google’s app stores. Interestingly, some users claimed to still access the platform via mobile apps and desktop versions. The law backing the ban, which was upheld by the Supreme Court on Friday, prohibits Internet service providers, including tech giants like Apple and Google, from facilitating TikTok’s usage.

Potential Buyers and TikTok’s Future

Even though Trump’s intervention has temporarily shielded service providers from possible penalties, TikTok’s standing in the U.S. regulatory landscape remains precarious. Trump has been vocal about advocating for a U.S.-controlled joint venture in which a domestic entity would hold a 50% stake in TikTok, thereby ensuring the platform operates securely within the country, although ByteDance insists it has no plans for a sale.

Interest in acquiring TikTok’s thriving U.S. operations, which analysts value at around $50 billion, has grown. Various parties, including former Los Angeles Dodgers owner Frank McCourt, have expressed interest in purchasing TikTok. Reports indicate that discussions explore potential deals involving high-profile figures, including Elon Musk, although TikTok maintains that such conversations have not taken place. Further, U.S.-based Perplexity AI has reportedly submitted a bid to ByteDance, proposing a merger that would create a new entity through collaboration with various partners.

The Ownership Structure of ByteDance

ByteDance remains a privately held entity, primarily owned by institutional investors like BlackRock and General Atlantic, who collectively own 60% of the company, while the founders and employees retain a 20% stake. One important aspect to consider is the company’s workforce, consisting of over 7,000 employees in the United States, highlighting its significant economic footprint.

Conclusion

While the restoration of services heralds a temporary alleviation for TikTok users and businesses that rely on the platform, the ongoing legal and ownership disputes surrounding the app highlight a continued need for resolution. As the political landscape shifts with Trump’s executive action, the fate of TikTok in the U.S. hangs in the balance, waiting for a more definitive long-term solution regarding its operations and compliance with local laws.

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Trump Intervenes to Save TikTok: Ban Delay Brings Relief for Millions of Users and Businesses