Trump Plans to Revive TikTok with 50% U.S. Ownership Requirement

 

Trump Plans to Revive TikTok with 50% U.S. Ownership Requirement

In a surprising move, President-elect Donald Trump has announced plans to reinstate access to TikTok in the United States through an executive order after his swearing-in on Monday. However, Trump stated that the app must have at least 50% ownership by U.S. investors to continue operations.

The popular social media platform went dark for its 170 million American users on Saturday after a law banning it on national security grounds took effect Sunday. U.S. officials expressed concerns that TikTok’s Chinese parent company, ByteDance, could misuse Americans' data. Trump has pledged to extend the deadline for compliance to negotiate a resolution that protects U.S. interests.

Saving TikTok: Trump’s Proposal

"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 stay up," Trump shared on Truth Social. He added that his executive order would also eliminate liability for companies that assist in keeping TikTok operational during this transition.

The President-elect’s decision to grant TikTok a 90-day reprieve from the ban has been acknowledged by the platform. A message posted to TikTok users reassured them of Trump’s willingness to work toward a solution, stating: “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.”

TikTok Ban’s Impact on U.S.-China Relations

The unprecedented shutdown of TikTok is poised to have far-reaching effects on U.S.-China relations, social media markets, and millions of Americans who rely on the app culturally and economically. The ban has also set a precedent, being the first time the U.S. has prohibited a major social media platform.

The law, overwhelmingly passed by Congress, gives the incoming administration significant authority to ban or mandate the sale of other Chinese-owned apps. ByteDance’s other platforms, such as the video editing app CapCut and lifestyle app Lemon8, have also been taken offline in U.S. app stores.

Users Turn to Alternatives

The shutdown has prompted TikTok’s primarily younger audience to seek alternative platforms like RedNote, a China-based competitor. Social media giants Meta and Snap have seen their stock prices rise amid expectations of gaining displaced users and advertising dollars.

Meanwhile, users have expressed frustration over the app’s unavailability. Many have turned to virtual private networks (VPNs) to bypass restrictions, with web searches for VPNs spiking shortly after TikTok went offline. Marketing agencies reliant on TikTok are scrambling to adjust their strategies, with one executive describing the situation as a “hair on fire” moment.

TikTok’s Future Under Trump

There is growing speculation that TikTok could make a comeback under the Trump administration, which has expressed interest in a “political resolution” to the ban. Reports suggest that Beijing has discussed selling TikTok’s U.S. operations to a Trump ally, billionaire Elon Musk, though ByteDance has denied these claims.

Other potential suitors for TikTok’s U.S. operations have emerged, including Perplexity AI, a search engine startup that submitted a bid on Saturday to merge with TikTok’s U.S. operations. Former Los Angeles Dodgers owner Frank McCourt has also shown interest in acquiring the app, which analysts estimate could be worth as much as $50 billion.

Privately held ByteDance is currently about 60% owned by institutional investors like BlackRock and General Atlantic, with its founders and employees holding 20% each. The company employs over 7,000 people in the U.S.

Broader Implications

The TikTok saga underscores the complexities of balancing national security concerns with the economic and cultural significance of social media platforms. As the Trump administration works to revive TikTok under new ownership rules, the case could serve as a blueprint for managing other foreign-owned tech platforms in the future.

This high-stakes situation highlights the evolving dynamics of U.S.-China relations, as well as the political and economic challenges of regulating global technology giants. For millions of TikTok users and the broader social media landscape, the coming weeks will determine whether the app’s revival is temporary or a long-term solution to its uncertain future.