Recent Update on TikTok Service Restoration
Following the announcement that TikTok would be suspended in the USA to comply with a Congress-approved law, the platform revealed on Sunday that it is in the process of restoring service. This decision comes after a message from President-elect Donald Trump, stating that he intends to postpone the implementation of the rule.
TikTok expressed gratitude to Trump via a post on its X Network (formerly Twitter) account for providing necessary clarity and security assurance. This assurance is crucial for internet service providers and app stores, which would be exempt from harsh sanctions if TikTok’s Chinese owners do not sell their US subsidiary.
The law, which came into effect on Sunday, led to TikTok’s temporary shutdown in the United States. The platform is currently inaccessible to over 170 million users.
Time and Business
President-elect Trump has proposed a potential solution, suggesting a 50% US ownership stake in a joint venture. Trump explained that the decree he plans to issue on Monday will extend the time for negotiations, allowing for a possible agreement.
Trump’s vision involves a joint venture between the current owners of TikTok and/or new owners, with the US obtaining 50% ownership. This, he believes, could scale the platform’s value to hundreds of billions or even trillions of dollars.
TikTok Offline
The US Supreme Court recently endorsed legislation that bans the social network if its Chinese owners do not sell it. The court ruled that the law does not violate freedom of expression and that the US government has demonstrated legitimate security concerns.
As a result, TikTok disconnected access to its US users late Saturday, displaying a message warning that the platform is no longer available due to the implemented law.
Offers on the Table
Several proposals are being considered, including a $20 billion investment from businessman Frank McCourt and other partners for the platform’s US activities, excluding its powerful algorithm.
Perplexity AI, an emerging artificial intelligence company, has also submitted a proposal to merge with the US subsidiary of TikTok. While the exact amount is unspecified, a source close to the matter estimated the deal to be valued at no less than $50 billion.