President-Elect Proposes 90-Day Extension for TikTok Sale with US Considering 50% Stake
On Sunday, TikTok announced the restoration of its services in the United States after former President Donald Trump pledged to delay the app’s ban. Trump, now President-elect, wrote on Truth Social that he would sign an executive order granting the Chinese-owned video app additional time to find a buyer. He proposed that the U.S. or an American firm take a 50% ownership stake in TikTok, stating, “By doing this, we save TikTok, keep it in good hands and allow it to stay up.” Trump emphasized the app’s value with U.S. approval, projecting it could be worth hundreds of billions, even trillions of dollars.
The Ban and Its Implications
TikTok had ceased operations in the U.S. late Saturday, impacting its 170 million users. This followed a law passed in April that mandated TikTok, currently owned by ByteDance, to either sell to a non-Chinese entity or face a U.S. shutdown. The Supreme Court upheld the ban on Friday, leading TikTok to halt services temporarily. The law also blocked the app from being distributed, maintained, or updated in app stores if it failed to secure a sale.
From Saturday night until Sunday afternoon, U.S. users encountered a pop-up message: “A law banning TikTok has been enacted in the US. Unfortunately, that means you can’t use TikTok for now.” Trump’s intervention came as a surprise, given his previous administration’s push for a ban. However, after gaining a significant following on TikTok during his 2024 presidential campaign, he sought to save the app.
TikTok’s Response
Following Trump’s announcement, TikTok’s CEO, Shou Zi Chew, expressed gratitude in a video message, acknowledging Trump’s efforts to keep the app active in the U.S. Chew is expected to attend Trump’s inauguration ceremony in person. TikTok released a statement confirming the restoration of services and thanking Trump for providing clarity to service providers, ensuring no penalties for continuing to offer TikTok to American users. The company highlighted its role in supporting over 7 million small businesses and championing the First Amendment against arbitrary censorship.
National Security Concerns and Future Plans
Incoming National Security Adviser Mike Waltz indicated that continued Chinese ownership had not been ruled out, provided there were safeguards to protect data on U.S. soil. Trump’s executive order aims to provide a 90-day extension for TikTok to find a buyer, with the potential for further evaluations and deals.
Concerns about TikTok have centered on the possibility of the Chinese state accessing U.S. user data or manipulating the app’s algorithm. Chew has repeatedly denied any Chinese state involvement, asserting that ByteDance is not an agent of China or any other country.
Legislative and Industry Reactions
Despite Trump’s executive order, Republican leaders, including House Speaker Mike Johnson, emphasized the necessity of a complete divestiture from ByteDance to comply with the law. Senators Tom Cotton and Pete Ricketts stated that there’s no legal basis for extending the ban’s effective date and stressed that a sale severing ties with China is essential for TikTok’s future in the U.S.
Democratic leaders, such as Senate Minority Leader Chuck Schumer, called for more time to find an American buyer for TikTok, highlighting the need to protect content creators’ livelihoods and national security. Meanwhile, offers from investors like Kevin O’Leary and reports of potential mergers have emerged, although TikTok dismissed reports involving Elon Musk as “pure fiction.”
Conclusion
TikTok’s temporary shutdown and swift restoration underline the complex interplay of technology, geopolitics, and national security. As the company navigates this turbulent landscape, the proposed solutions and stakeholders’ reactions will shape the future of TikTok in the United States. With millions of users and small businesses relying on the platform, the stakes remain high as negotiations continue.



