Trump to revive TikTok, but wants 50% US ownership

WASHINGTON: President-elect Donald Trump said he would revive TikTok access in the U.S. by executive order after he is sworn in on Monday, but said he wants the popular social media app to be at least half owned by U.S. investors.

TikTok stopped working for its 170 million American users late on Saturday before a law shutting it down on national security grounds took effect on Sunday. U.S. officials had warned that under Chinese parent company ByteDance, there was a risk of Americans’ data being misused.

Trump said he would “extend the period of time before the law’s prohibitions take effect, so that we can make a deal to protect our national security.”

“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 say up,” he wrote on Truth Social.

Read More: TikTok stops working for US users, disappears from Apple, Google stores

Trump said the executive order would specify there would be no liability for any company that helped keep TikTok from going dark before his order.

Trump had earlier said he would most likely give TikTok a 90-day reprieve from the ban after he takes office, a promise TikTok cited in a notice posted to users on the app.

“A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned,” a message notified users of TikTok, which disappeared from Apple (AAPL.O), opens new tab and Google app stores late on Saturday.

Even if temporary, the unprecedented shutdown of TikTok is set to have a wide-ranging impact on U.S.-China relations, U.S. politics, the social media marketplace and millions of Americans who depend on the app economically and culturally.

The U.S. has never banned a major social media platform. The law passed overwhelmingly by Congress gives the incoming Trump administration sweeping authority to ban or seek the sale of other Chinese-owned apps.

Other apps owned by ByteDance, including video editing app CapCut and lifestyle social app Lemon8, were also offline and unavailable in U.S. app stores as of late Saturday.

It was not clear if any U.S. users could still access the app, but it was no longer working for many users, and people seeking to access it through a web application were met with the same message that TikTok was no longer working.

MOVE TO ALTERNATIVES

Under the law passed last year and upheld on Friday by a unanimous U.S. Supreme Court, the platform had until Sunday to cut ties with its China-based parent or shut down its U.S. operation to resolve concerns it poses a threat to national security.

The Chinese Embassy in Washington on Friday accused the U.S. of using unfair state power to suppress TikTok. “China will take all necessary measures to resolutely safeguard its legitimate rights and interests,” a spokesperson said.

Uncertainty over the app’s future had sent users – mostly younger people – scrambling to alternatives including China-based RedNote. Rivals Meta (META.O), opens new tab and Snap (SNAP.N), opens new tab have seen their share prices rise this month ahead of the ban, as investors bet on an influx of users and advertising dollars.
“This is my new home now,” wrote a user in a RedNote post, tagged with the words “tiktokrefugee” and “sad”.

Minutes after TikTok’s U.S. shutdown, other users took to X, formerly called Twitter.

“I didn’t really think that they would cut off TikTok. Now I’m sad and I miss the friends I made there. Hoping it all comes back in just a few days,” wrote @RavenclawJedi.

‘HAIR ON FIRE’ MOMENT

NordVPN, a popular virtual private network, or VPN, allowing users to access the internet from servers around the world, said it was “experiencing temporary technical difficulties.”

Web searches for “VPN” spiked in the minutes after U.S. users lost access to TikTok, according to Google Trends.

Users on Instagram fretted about whether they would still receive merchandise they had bought on TikTok Shop, the video platform’s e-commerce arm.

Marketing firms reliant on TikTok have rushed to prepare contingency plans in what one executive described as a “hair on fire” moment after months of conventional wisdom saying that a solution would materialize to keep the app running.

There have been signs TikTok could make a comeback under Trump, who has said he wants to pursue a “political resolution” of the issue and last month urged the Supreme Court to pause implementation of the ban.

TikTok CEO Shou Zi Chew plans to attend the U.S. presidential inauguration and attend a rally with Trump on Sunday, a source told Reuters.

Suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in the fast-growing business that analysts estimate could be worth as much as $50 billion. Media reports say Beijing has also held talks about selling TikTok’s U.S. operations to billionaire and Trump ally Elon Musk, though the company has denied that.

U.S. search engine startup Perplexity AI submitted a bid on Saturday to ByteDance for Perplexity to merge with TikTok U.S., a source familiar with the company’s plans told Reuters. Perplexity would merge with TikTok U.S. and create a new entity by combining the merged company with other partners, the person added.

Privately held ByteDance is about 60% owned by institutional investors such as BlackRock and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the U.S.