This past weekend was tumultuous for TikTok users, as disruptions unfolded after the Supreme Court’s January 19 ruling endorsing a ban on the popular app.
On Sunday, President Donald Trump, who is set to assume office, took to Truth Social, revealing his plan to sign an executive order aimed at granting TikTok extra time before any restrictions kick in.
By the afternoon, the platform had resumed normal operations.
Initially, following the Supreme Court’s decision, TikTok became inaccessible to its 170 million U.S. users on Saturday evening, displaying a message that read “service temporarily unavailable.” However, by midday Sunday, the app was back online, although it was still missing from app stores.
In a show of appreciation, TikTok thanked President-elect Trump for the guidance that enabled the platform’s swift return without facing consequences.
The app also expressed gratitude to its community for their patience and continued support during this challenging situation.
WHY THE BAN?
The challenges TikTok faces stem from the Protecting Americans From Foreign Adversary Controlled Applications Act, a piece of legislation passed by Congress in April 2024.
This law required TikTok to sever ties with its Beijing-based parent company, ByteDance, by January 19.
The motivation behind this legislation lies in concerns about the potential for American user data to be accessed by the Chinese government and the spread of propaganda.
Failure to comply could lead to TikTok being banned from U.S. app stores.
In its defense, TikTok argued in court that this legislation violated First Amendment rights.
Despite making its case before the Supreme Court on January 10, the company did not prevail, culminating in the court’s announcement on Friday that upheld the ban.
HOW TIKTOK MADE A COMEBACK
The tide began to turn thanks to Trump’s post on Truth Social, where he called on businesses to support TikTok’s continued availability.
He promised to sign an executive order that would extend the current timeline for legal restrictions, ensuring that companies who helped keep TikTok operational would face no repercussions.
Additionally, Trump expressed an interest in a potential U.S. ownership stake of at least 50% in any future partnership with the app.
Following Trump’s declaration, TikTok spoke with TechCrunch to outline its efforts towards restoring service.
The company’s statement highlighted how the clarity and assurances provided by Trump helped mitigate concerns for service providers, thereby ensuring continued access for the vast user base and aiding small businesses that depend on the platform.
INCREASING INTEREST IN ACQUISITION
The situation has sparked a flurry of acquisition interest in TikTok, with several formal and informal bids surfacing.
Investor Kevin O’Leary and billionaire Frank McCourt are reportedly collaborating on a $20 billion proposal.
Meanwhile, Trump’s preference for American ownership could influence negotiations, with speculation swirling about potential discussions involving Chinese officials and Elon Musk, which TikTok has categorically dismissed as unfounded.
In an intriguing development, Perplexity AI, an AI search engine startup, recently made headlines by offering over $50 billion to ByteDance on Saturday.
This proposal aims to create a merged entity that would encompass TikTok U.S., Perplexity, and their respective partners.
By suggesting a merger rather than outright acquisition, Perplexity seeks to bolster its video capabilities while allowing ByteDance investors to retain their ownership stakes.
However, ByteDance has indicated a reluctance to part with TikTok.
Source: Entrepreneur