Understanding the Recent Developments in TikTok’s US Operations
On a recent Sunday, TikTok users in the United States experienced a temporary disruption in the app’s services. This brief outage was a result of the company’s decision to suspend its operations in anticipation of a US law that would ban the app. However, following an announcement from President-elect Donald Trump, the app resumed its services within 12 hours.
Details of the Moratorium and Potential Ownership Shift
As President-elect Trump prepares to take office on Monday, January 20, he has outlined plans to issue an executive order introducing a 90-day moratorium on the law that would otherwise restrict TikTok’s operations. This move aims to facilitate negotiations that could lead to the company avoiding the ban. Additionally, Trump has proposed that the company be 50% American-owned as a potential solution.
“Don’t let TikTok go dark”
Via his ‘Truth Social’ account, the incoming president urged companies not to let TikTok cease operations. He announced his intention to issue an executive order that would extend the timeframe before the law’s restrictions take effect, allowing for negotiations to ensure national security. The order would also provide protection for companies that assisted in preventing TikTok from going dark prior to the order.
The proposed plan involves creating a joint venture, where the US would acquire a 50% stake. This would enable the country to maintain control while allowing the app to continue operating. Without US approval, the app’s future remains uncertain, but with approval, its value could be substantial.