In a significant turn of events, TikTok services were restored in the United States on January 20, 2025, following President-elect Donald Trump's announcement of his support for the app. This decision came in the wake of the U.S. Supreme Court's ruling on January 19, 2025, which upheld the Protecting Americans from Foreign Adversary Controlled Applications Act. This legislation mandated that ByteDance, TikTok's parent company, divest its interest in the app by the same date or face a nationwide ban [50f0a45c].
Trump stated he would issue an executive order to extend the enforcement period of the law, allowing for further negotiations regarding a potential joint venture that would enable U.S. ownership of TikTok. He emphasized the app's crucial role in the economy, noting its contribution to securing 36 points of the youth vote during the recent election [50f0a45c].
In a surprising twist, Trump has reached out to popular YouTuber MrBeast (Jimmy Donaldson), proposing that he consider acquiring TikTok to prevent its ban and secure American control over the platform. This move aligns with Trump's broader strategy to strengthen American dominance in the tech industry, especially amid ongoing concerns over data misuse and national security [9bdd370b].
Following Trump's announcement, TikTok confirmed it was restoring services and expressed gratitude for the clarification that service providers would not face penalties for keeping the app operational for over 170 million Americans and supporting over seven million small businesses [50f0a45c].
This restoration comes at a critical moment as TikTok faces a potential ban unless it severs ties with ByteDance. The proposed merger involving TikTok US, ByteDance, and New Capital Partners aims to preserve investor stakes while integrating TikTok's user base with AI-driven search capabilities [214b3f57].
In addition to MrBeast's interest, Perplexity AI, backed by Jeff Bezos, has also shown interest in acquiring TikTok, while Elon Musk has declined to bid. TikTok's U.S. operations are valued between $30 billion and $50 billion, making any acquisition a significant move in the social media landscape [9bdd370b].
In a recent development, Trump signed an executive order on January 21, 2025, delaying a ban on TikTok by 75 days. He stated that if a deal is reached, the U.S. should receive half of TikTok, further emphasizing the app's role as a bargaining chip in Sino-U.S. economic relations [853a8f10].
Trump's intervention follows positive discussions with Chinese President Xi Jinping on January 17, 2025, where various issues, including TikTok, were addressed [50f0a45c]. As part of these discussions, China has indicated a willingness to negotiate a deal regarding TikTok, with Chinese Foreign Ministry spokesperson Mao Ning stating that companies should independently decide their operations [f0dbe78c]. This reflects a potential shift in China's stance, possibly paving the way for a cooperative agreement that could benefit both nations.
However, scrutiny from U.S. lawmakers continues, with Amazon representatives being called to discuss their collaboration with TikTok amid national security concerns regarding the app's Chinese ownership. The House Select Committee on China remains focused on the implications of TikTok's operations in the U.S. [0586e827].
Experts have criticized the forced stake sale as deviating from market economy principles, warning of negative impacts on market competition and innovation [853a8f10]. The intersection of these developments highlights TikTok's precarious position as it seeks to balance business interests with regulatory demands. The outcome of Trump's proposed sale and the ongoing negotiations will likely have far-reaching implications for TikTok's future in the U.S. and the broader tech landscape [214b3f57].