TikTok’s Rollercoaster Weekend: What’s Next Under Trump?

It has been an eventful few days for users of TikTok in the United States, culminating in a temporary shutdown of the app over the weekend. This surge of uncertainty was provoked by a Supreme Court ruling which upheld a law banning TikTok unless the Chinese parent company, ByteDance, sells its U.S. operations. The ban, originally slated to take effect on Sunday, was a looming threat that sent the app dark late Saturday, only to spring back to life midday Sunday.

TikTok, in a show of gratitude to President Trump, acknowledged the clarity he provided concerning the status of the app. “We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive,” the company stated on Twitter, now known as X.

The Trump Factor

While President-elect Trump has yet to take office, he has already expressed his intent to delay the ban through an executive order once he is sworn in. He took to Truth Social to relay that there would be “no liability for any company that helped keep TikTok from going dark before my order.” This suggests a possible lifeline for TikTok, at least in the short term, while discussions of ownership unfold.

What Lies Ahead for TikTok?

Currently, it seems TikTok has been granted a reprieve for another 90 days, which will serve as a critical window for the U.S. government and stakeholders to explore a buyer for the app’s U.S. operations. Trump’s recent comments hint at a preference for a joint venture structure whereby the U.S. would obtain a 50% stake in the app alongside new or existing owners. However, whether ByteDance will acquiesce to such an arrangement remains uncertain.

Throughout previous months, ByteDance has shown reluctance to sell its U.S. operations and has actively fought against the impending ban. Analysts opine that any deal that materializes may not include the algorithm that is instrumental in TikTok’s success. Dan Ives, an analyst with Wedbush, asserted, “ByteDance will never sell this key D.N.A.” This is no small matter; TikTok’s algorithm is cherished by its users, and it’s likely one of the primary reasons many opted to switch to competing Chinese apps like RedNote amidst the uncertainties cascading from the ban.

Potential Buyers on the Radar

In the event that ByteDance and the U.S. government greenlight the sale of TikTok’s domestic operations, a host of candidates appear poised to enter the fray. Notably, Perplexity AI has shown interest, joining a growing list of potential buyers that includes entrepreneur Frank McCourt and investor Kevin O’Leary. McCourt has previously referred to his endeavor as “The People’s Bid,” demonstrating an ambition to rally together a consortium of partners to make a serious offer for the app.

Ives predicts a wave of bids for TikTok from larger tech companies, private equity firms, and strategic investors. In the midst of all this speculation, one fact stands resolute: TikTok has become a vital element of the social media landscape, and attempts to restrict or ban it have only intensified the app’s allure among users.

The Bigger Picture

The whole debacle surrounding TikTok is symptomatic of a larger discussion about technology and national security. The app has become a political football, serving as a focal point for the ongoing tension between the U.S. and China. As we navigate these treacherous waters, one thing becomes apparent: the fate of TikTok will not just affect the daily lives of its millions of users, but it will also have broader implications on market dynamics and trade relations.

In conclusion, TikTok’s situation is emblematic of a pivotal moment in both technology and finance. The cacophony surrounding the app underscores a traditional principle: that businesses must adapt or face extinction. American ownership may not guarantee the preservation of TikTok as users know it, but it would represent a significant shift in our tech landscape. Whether that shift leads to stability or renewed turmoil remains to be seen, and the clock is ticking.