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Donald Trump called for US part-ownership in TikTok and plans to delay its ban.
A last-minute proposal by Perplexity AI offered a merger with TikTok’s US subsidiary, estimated at $50 billion.
President-elect Donald Trump has called for the United States to take part-ownership in TikTok and vowed to issue an executive order delaying a looming ban on the wildly popular app to allow time to “make a deal”.
Trump’s announcement came hours after TikTok went dark inthe United States under a law banning it in the name of national security, as a deadline for its Chinese owners ByteDance to sell its US subsidiary to non-Chinese buyers lapsed.
The law, however, includes a clause allowing for a 90-day delay if the White House can show progress towards a viable deal, but so far ByteDance has flatly refused any sale.
Outgoing President Joe Biden’s administration said it would leave the matter to Trump – who takes office tomorrow – and that it would not enforce any ban.
“I will issue an executive order on Monday (US time) to extend the period of time before the law’s prohibitions take effect, so that we can make a deal to protect our national security,” Trump said on his Truth Social platform.
TikTok has been banned in the US. Photo / NurPhoto via Getty Images
He said he “would like the United States to have a 50% ownership position in a joint venture”, arguing that the app’s value could surge to “hundreds of billions of dollars – maybe trillions”.
“By doing this, we save TikTok, keep it in good hands,” Trump wrote.
From teenage dancers to grandmothers sharing cooking tips, TikTok has been embraced for its ability to transform ordinary users into global celebrities when a video goes viral.
But it is also rife with disinformation, and its Chinese ownership has long spurred national security fears, internationally as well as in the United States.
President-elect Donald Trump has called for the United States to take part-ownership in TikTok. Photo / Getty Images
In an earlier message to dismayed users trying to access the app on Sunday, TikTok said that “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!”
Trump, who had previously backed a TikTok ban and during his first term in office made moves towards one, did not offer further details on how such a deal would work.
Sunday’s blackout came after the US Supreme Court on Friday upheld the legislation banning it pending any sale.
But the app now has a fan in Trump, who – since signing an executive order stepping up pressure on ByteDance to sell in 2020 – has since credited the app with connecting him to younger voters.
It is unclear what the incoming President can do to lift the ban unless ByteDance sells, however.
“Congress wrote this law to be virtually president-proof,” warned Adam Kovacevich, chief executive of industry trade group Chamber of Progress.
Besides removing TikTok from app stores, the law requires Apple and Google to block new downloads, with the companies liable for penalties of up to $5000 per user if the app is accessed.
Oracle, which hosts TikTok’s servers, would also be legally obligated to enforce the ban.
Other social media platforms such as X were flooded with memes and comments mourning the move Sunday – though some posts were more cynical, with many pointing to Trump’s own previous efforts to ban TikTok.
In Europe, TikTok’s suspension drew praise from the Foreign Minister of Estonia – among the countries most resilient to disinformation, according to the European Media Literacy Index.
“Banning TikTok must be considered in Europe as well,” Margus Tsahkna said on X.
Over the past years, we’ve witnessed TikTok spreading disinformation & being a platform for election manipulations. On top of that, its vast data collection is known to pose a serious security risk.
The ban even became a hot topic at the Australian Open in Melbourne, where American tennis player Coco Gauff scrawled “RIP TikTok USA” on a courtside camera.
“I love TikTok, it’s like an escape ... hopefully it comes back,” the world No 3 told reporters.
A last-minute proposal made Saturday by the highly valued start-up Perplexity AI offered a merger with the US subsidiary of TikTok, a source with knowledge of the deal told AFP.
The proposal did not include a price but the source estimated it would cost at least US$50 billion.
Frank McCourt, the former owner of the Los Angeles Dodgers baseball team, has also made an offer to purchase TikTok’s US activities.
Meanwhile, thousands of worried TikTok users turned to Xiaohongshu (“Little Red Book”), a Chinese social media network similar to Instagram, ahead of the suspension.
Nicknamed “Red Note” by its American users, it was the most downloaded app on the US Apple Store last week.
