President-elect Donald Trump has announced plans to reinstate TikTok access in the United States through an executive order shortly after his inauguration on January 20, 2025.
However, he emphasized that at least 50% of TikTok’s ownership must belong to U.S. investors to ensure national security compliance.
The popular app ceased operations for its 170 million U.S. users late Saturday, just before a new law banning it on national security grounds took effect on Sunday. Officials argued that TikTok’s Chinese parent company, ByteDance, posed risks of data misuse.
Trump stated he would temporarily delay the ban’s implementation to allow negotiations aimed at safeguarding U.S. interests. In a post on Truth Social, he explained, “I would like the United States to have a 50% ownership position in a joint venture. By doing this, we save TikTok, keep it in good hands, and allow it to stay up.”
Temporary Ban Affects Millions of Users
TikTok notified users about the shutdown through a message on its platform, stating that its removal from Apple and Google app stores would remain in place until a resolution is reached. ByteDance-owned apps like CapCut and Lemon8 were also removed from U.S. app stores.
Many users sought alternatives, including China-based RedNote, while social media platforms like Meta and Snap saw an uptick in user engagement and share prices. Some users expressed nostalgia for TikTok on X (formerly Twitter), using hashtags like #TikTokRefugee.
Search for Solutions and Political Implications
The ban, upheld by a unanimous U.S. Supreme Court, gives ByteDance the option to divest TikTok’s U.S. operations. Trump has advocated for a political resolution, stating his intent to prevent a permanent shutdown.
Will TikTok Have A New CEO?
TikTok CEO Shou Zi Chew attended Trump’s inauguration, fueling speculation about a potential resolution. Reports suggest interest from various suitors, including Elon Musk and former Los Angeles Dodgers owner Frank McCourt, in acquiring TikTok’s U.S. operations.
While Trump has expressed interest in buying the app, there are no reports if this will open the position for a new CEO. NewsX will keep you posted.
The sudden shutdown caused a surge in VPN searches as users tried to access TikTok from international servers. Marketing firms reliant on the platform scrambled to develop contingency strategies, while users worried about ongoing transactions through TikTok Shop.
Privately held ByteDance is approximately 60% owned by institutional investors like BlackRock and General Atlantic, with its founders and employees each holding a 20% stake. Analysts estimate TikTok’s U.S. operations could be worth $50 billion, underscoring the high stakes involved in its future.
While uncertainty persists, Trump’s willingness to negotiate and extend a reprieve offers hope for TikTok’s reinstatement in the United States.