TikTok began restoring its services in the United States on Sunday after briefly going dark due to a Supreme Court-backed ban. The ban, initially enforced following concerns over national security risks, was met with a swift response from President-elect Donald Trump, who promised to give the social media platform more time to find a U.S. buyer.
TikTok Goes Dark, Then Returns
Users were unable to access TikTok for several hours as the app complied with the Supreme Court ruling that upheld a Congressional ban. However, later in the day, users reported being able to log back in, with a message thanking them and Trump for their support. Despite the app’s restoration, it remains unavailable for download on Apple (NASDAQ:AAPL) and Google’s app stores.
Trump’s Intervention
In a statement, Trump announced plans to issue an executive order once he takes office on Monday, granting TikTok an extended deadline to find a suitable U.S. buyer. Trump emphasized his desire for a joint venture that would ensure at least 50% of TikTok’s ownership remains in U.S. hands, addressing national security concerns while allowing the platform to continue its operations.
Potential Buyers Emerge
Speculation about potential buyers for TikTok has been growing, with notable names in the mix. Reports suggest that Tesla (NASDAQ:TSLA) CEO Elon Musk, a close confidant of Trump, could emerge as a suitor. Financial analysts at Morgan Stanley (NYSE:MS) have speculated that Amazon (NASDAQ:AMZN) might also express interest in acquiring the platform.
Additionally, a group of entrepreneurs led by Jesse Tinsley, which potentially includes social media influencer Mr. Beast, is reportedly preparing a bid to acquire TikTok.
National Security Concerns
The Congressional ban on TikTok was driven by fears that its parent company, ByteDance, was collecting vast amounts of user data, potentially compromising U.S. national security. Lawmakers have expressed concerns over the influence of the Chinese government and the possibility of user data being misused.
Impact on the Social Media Landscape
A potential ban on TikTok was expected to benefit U.S.-based competitors, such as Meta Platforms (NASDAQ:META) and Snap Inc. (NYSE:SNAP). Analysts believe that these platforms would have absorbed TikTok’s massive user base and advertising revenue, reshaping the competitive landscape of social media in the United States.
Financial Market Reaction
Investors are closely watching developments surrounding TikTok’s sale and Trump’s executive order. Companies linked to social media, including Meta, Snap, and Twitter (NYSE:TWTR), saw fluctuations in stock prices as the news unfolded.
For deeper insights into market movements and economic implications related to this event, explore the Economics Calendar for upcoming economic events that may impact the tech sector.
TikTok’s fate in the U.S. remains uncertain, with the coming weeks proving crucial in determining whether the platform can secure a buyer and continue operating under new ownership. Investors, users, and stakeholders alike will be keeping a close eye on further developments as they unfold.
