Trump says he may give TikTok a 90-day reprieve Monday

January 19, 2025 , 08:52 AM

White House dismisses TikTok’s comment as a stunt
Supreme Court upholds ban, Biden unlikely to intervene
Users explore alternatives, rivals see share rise

By David Shepardson

(January 19, 2025, REUTERS) – U.S. President-elect Donald Trump said on Saturday he would “most likely” give TikTok a 90-day reprieve from a potential ban after he takes office on Monday, as the app with 170 million American users buzzed with nervous anticipation ahead of a shutdown set for Sunday.

“The 90-day extension is something that will be most likely done, because it’s appropriate,” Trump told NBC. “If I decide to do that, I’ll probably announce it on Monday.”

The Chinese-owned app, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, said on Friday it will go dark in the U.S. on Sunday unless President Joe Biden’s administration provides assurances to companies such as Apple AAPL.O and Google GOOGL.O that they will not face enforcement actions when a ban takes effect.

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

The White House dismissed TikTok’s Friday comment as a stunt, reiterating on Saturday that it was up to the incoming Trump administration to take action, increasing the likelihood of a shutdown on Sunday.

“We see no reason for TikTok or other companies to take actions in the next few days before the Trump administration takes office on Monday,” press secretary Karine Jean-Pierre said in a statement.

It’s not clear if TikTok has met the high legal bar to win a 90-day reprieve from Trump — which requires having binding agreements in place to enable ByteDance to complete a sale of TikTok by mid-April.

TikTok did not immediately respond to a request for comment on the new White House statement.

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.

Users on the app were saying their goodbyes, some filming themselves frantically scrolling or sharing final secrets with their followers ahead of the ban.

“Does anyone know if the TikTok ban goes into effect on Sunday or if we have all of Sunday to like brain rot still? I need to plan accordingly,” fitness influencer Britany Williams said in a video to her 64,000 followers.

The Supreme Court unanimously upheld the ban on Friday, saying the law was justified on national security grounds.

Without a decision by Biden to formally invoke a 90-day delay in the deadline, companies providing services to TikTok or hosting the app could face enormous financial liability.

Experts said Trump could also direct his Justice Department to “deprioritize” or not enforce the law but it is not clear if that will provide enough legal protection to app store owners Apple and Google as well as companies like Oracle providing crucial data hosting and other services for TikTok.

Trump tried to force the divestmentof TikTok in 2020 and vowed to ban it but was blocked by U.S. courts.

USERS MOVE TO ALTERNATIVES

Uncertainty over the app’s future had sent users – mostly younger people – scrambling to alternatives including China-based RedNote. Rivals Meta META.O and Snap SNAP.N had also seen their shares rise this month ahead of the ban, as investors bet on an influx of users and ad dollars.

Marketing firms reliant on TikTok have rushed to prepare contingency plans this week 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 New Capital 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.

(Reporting by Jaspreet Singh, Aditya Soni in Bengaluru and Mrinmay Dey, David Shepardson in Washington, Doyinsola Oladipo in New York and David Ljunggren in Ottawa;Editing by Nick Zieminski, Rod Nickel, Heather Timmons, Daniel Wallis and Deepa Babington)

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