TikTok’s US survival: Prospective buyers grow as Trump delays ban
Unlike India, where TikTok faced an unceremonious exit around five years back, the China-based social media platform seems to be having a chance of survival in the US with President Donald Trump coming to its rescue.
After his inauguration, the new President signed an executive order, giving the world’s “one of the most popular social media platforms” a 75-day reprieve to find an American buyer and save itself from a permanent ban.
Apart from pushing back the TikTok ban, he also floated the idea of tech majors like SpaceX CEO Elon Musk and Oracle Corporation chairman Larry Ellison as potential non-Chinese buyers of the platform.
Reports quoted Trump saying that he was open to a joint venture between TikTok’s existing parent company — China-based ByteDance — and a new American owner, while suggesting the names of Musk and Ellison for purchasing half of the social media platform in a partnership with the government. As the countdown started, new prospective buyers emerged.
As per the latest reports, Jesse Tinsley, CEO of Employer.com, and a coalition that includes YouTuber MrBeast, are also in the running. TikTok star MrBeast, whose real name is Jimmy Donaldson, is said to be the “single most popular YouTuber and third-most popular TikToker”.
The big money
Analysts value TikTok somewhere between $100-200 billion for its database and the “secret and coveted algorithm”.
Whether Chinese internet company ByteDance, which owns TikToK, and the Chinese government will be willing to part with the algorithm and approve the sale remains to be seen. Without the algorithm its worth is said to be much less.
Supporters of the ban say TikTok’s link to the Chinese government poses risks, including potential misuse of user data.
As per detractors, the ban “infringes free speech and is an unnecessary disruption to thriving online communities and small businesses on the platform”.
There seems to be another angle too. According to some analysts, everyone is expecting a bitter tariff war between the US and China. However, with this decision Trump has left room for negotiations with Xi Jinping. In other words, Trump seems to have given China some breathing room, which Beijing may appreciate.
TikToK — India
This is not the first time that the China-based app is facing a ban in a country on national security grounds.
Around five years back in June 2020, India banned several applications, including TikTok, citing threat to national security, sovereignty and defence of India as reasons.
In its statement, the Ministry of Electronics and IT said the apps were engaged in “activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order”.
According to officials, there were many complaints, including the misuse of mobile apps for stealing and surreptitiously transmitting users’ data in an unauthorised manner to servers located outside India.
TikTok — US
In the US also, the ban was enforced citing concerns related to national security and user privacy. Reports quoting US officials also accused TikTok of spreading “communist propaganda”.
Apparently, there were accusations regarding its algorithms supporting “pro-Palestine sentiments” and affecting students’ sentiments in universities.
Allegations were that the real reason to ban TikTok was not China but to “suppress news on Gaza”.
As per the Foreign Adversary Controlled Applications Act signed under former president Joe Biden, ByteDance was required to divest the platform by January 19 to address bipartisan concerns over data privacy and national security.
In other words, starting January 19, TikTok was to be banned in the US unless it was sold to a buyer from the US or one of the allies.
Trump and TikTok
The legislation mandating TikTok’s removal from app stores, citing national security concerns, took effect on Saturday night, making it unusable for Americans.
However, on Sunday, Trump said he would issue an executive order after his inauguration on Monday to delay enforcement of the law.
He has now delayed the enforcement of the TikTok ban for 75 days through an executive action, instructing the US Justice Department to hold off on enforcing the legislation. This legislation, which was passed with broad bipartisan support in Congress and signed into law by Joe Biden in April.
According to reports, Republican Senators Tom Cotton of Arkansas and Pete Ricketts of Nebraska have criticised Trump’s proposal to extend the TikTok’s timeline.
The law’s provisions require strict adherence, and any reprieve would lack a legal foundation, Cotton and Ricketts were quoted as saying.
Meanwhile, the access to TikTok app and web page is back in the US.
“In agreement with our service providers, TikTok is in the process of restoring service. We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.
“We will work with President Trump on a long-term solution that keeps TikTok in the United States,” reports quoted the company as saying.
