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

Written by David Shepardson

WASHINGTON (Reuters) – U.S. President-elect Donald Trump said on Saturday he would “probably” give TikTok a 90-day reprieve from a potential ban after he takes office on Monday, as the app used by 170 million Americans buzzes with nervous anticipation. Before the scheduled closing on Sunday.

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

Users who logged in late Saturday were met with a message that the law “will force us to make our services temporarily unavailable. We are working to restore our service in the United States as soon as possible.”

The Chinese-owned app, which has taken over nearly half of Americans, powered small businesses and shaped online culture, said on Friday that it will stop operating in the US on Sunday unless President Joe Biden’s administration provides guarantees for companies like Apple (NASDAQ: NASDAQ: ) and Google (NASDAQ:) said they would not face enforcement action when the ban takes effect.

Under a law passed last year and unanimously upheld by the Supreme Court on Friday, the platform has until Sunday to sever ties with China-based parent ByteDance or close its U.S. operations to resolve concerns that it poses a national security threat.

The White House confirmed on Saturday that it was up to the incoming administration to take action, raising the possibility that the service would be shut down on Sunday.

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

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

The Chinese Embassy in Washington on Friday accused the United States of using unfair state power to suppress TikTok. “China will take all necessary measures to resolutely protect its legitimate rights and interests,” a spokesman said.

app, users are preparing to say goodbye

Meanwhile, TikTok and its fans prepared to say goodbye.

Some on the app filmed themselves frantically browsing or sharing final secrets with their followers before the ban.

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

Leaders at Oracle (NYSE:), the main cloud computing provider for TikTok’s US operations, told some employees to prepare to shut down servers hosting US TikTok data as soon as 9pm ET on Saturday (0200 GMT on Sunday) before the ban and reported information as of Sunday.

Oracle CEO Safra Catz is expected to give the final go-ahead to cut the servers, the report added, citing a person with direct knowledge of the plan. Oracle did not immediately respond to Reuters’ request for comment outside normal business hours.

Huge financial responsibility

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

Without a decision from Biden to formally invoke a 90-day delay in the deadline, companies that provide services for TikTok or host the app could face enormous financial liability.

Experts said Trump could also direct the Justice Department to “deprioritize” or not enforce the law, but it’s not clear whether that would provide enough legal protection for the Apple and Google app store owners who provide important services for TikTok.

Trump tried to ban and divest TikTok in 2020 but was blocked by US courts.

Users move to alternatives

Uncertainty about the app’s future has sent users – mostly young people – scrambling to alternatives including China-based RedNote. Rivals Meta (NASDAQ:) and Snap also saw their shares rise this month before the ban, as investors bet on an influx of users and advertising dollars.

Marketing companies relying on TikTok scrambled to prepare contingency plans this week in what one executive described as a “hair on fire” moment after months of conventional wisdom that a solution would materialize to keep the app running.

There have been signs that TikTok may be making a comeback under Trump, who has said he wants to pursue a “political solution” to the issue and urged the Supreme Court last month to temporarily halt implementation of the ban.

A source told Reuters that TikTok CEO Shou Zi Chew intends to attend the US President’s inauguration and attend a rally with Trump on Sunday.

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 US operations to billionaire and Trump ally Elon Musk, although the company has denied this.

US search engine startup Perplexity AI submitted a proposal on Saturday to ByteDance in order to merge Perplexity with TikTok US, a source familiar with the company’s plans told Reuters. Perplexity will be merged with TikTok US and create a new entity by combining the combined company with other partners, the person added.

Privately held ByteDance is roughly 60% owned by institutional investors such as BlackRock (NYSE:) and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the United States