US President Donald Trump announced that he will be signing an executive order to keep TikTok operational in the United States for an additional 75 days.
This decision comes just hours before a deadline for the video-sharing platform to secure a non-Chinese owner or face a potential ban in the US.
The immensely popular application boasts over 170 million users in America.
It is facing threats from a US law that was overwhelmingly passed last year, requiring TikTok to separate from its Chinese parent company, ByteDance, or risk being shut down in the US.
Trump expressed his eagerness to collaborate with TikTok and China to finalize a deal, stating that he does not want the app to “go dark.”
Driven by national security concerns and a prevalent belief in the US that TikTok is ultimately under the control of the Chinese government, the law took effect on 19 January, just a day before Trump’s inauguration.
In the hours leading up to that deadline, TikTok temporarily ceased operations in the US and was removed from app stores, much to the disappointment of millions of users.
However, the Republican president quickly announced a 75-day extension, allowing TikTok to restore service to current users and return to the Apple and Google app stores by February.
This extension is set to expire at midnight on 5 April, yet Trump has consistently minimized potential risks associated with TikTok, expressing confidence in finding a buyer for the app’s US division.
The president also hinted that TikTok might be part of a broader agreement with China to alleviate the significant tariffs he imposed on Beijing as part of a global series of levies.
When asked yesterday if he was open to negotiating tariffs with other countries, he remarked: “As long as they are offering us something favorable – for instance with TikTok.”
“We find ourselves in a situation with TikTok where China will likely agree to a deal but may request something in return regarding the tariffs. The tariffs provide us substantial leverage in negotiations,” he added.
Who is interested in TikTok?
According to reports, a probable solution would involve current US investors in ByteDance transferring their stakes into a newly independent global TikTok entity.
Additional US investors, such as Oracle and Blackstone, the private equity firm, would be included to reduce the percentage of Chinese investors involved.
A significant portion of TikTok’s US operations is already managed on Oracle servers, with the company’s chairman, Larry Ellison, being a long-time ally of Trump.
However, there remains uncertainty, particularly regarding the fate of TikTok’s valuable algorithm. The New York Times indicated that the new company might license it from ByteDance.
This arrangement could contradict the essence of the law, which partly rests on the notion that TikTok’s algorithm could be utilized by the Chinese against US interests.
Amazon has also reportedly made a late-stage bid to acquire TikTok.
Other proposals include an initiative titled ‘The People’s Bid for TikTok,’ spearheaded by real estate and sports mogul Frank McCourt’s Project Liberty initiative.
The AI startup Perplexity recently indicated interest in purchasing TikTok, as did a joint venture involving YouTube sensation MrBeast.
Although Trump initially supported a ban during his first term, he has recently become a defender of TikTok, viewing it as a factor that attracted more young voters to his side in the November election.
One of his substantial political donors, billionaire Jeff Yass, holds a significant stake in the parent company ByteDance.
