TikTok threatens US shutdown as Trump considers reprieve

TikTok has warned that it will "go dark" in the United States on Sunday, cutting off access for 170 million users unless the government provides last-minute guarantees. President-elect Donald Trump has suggested he may grant a reprieve after taking office.

Following months of legal challenges, the U.S. Supreme Court upheld a law on Friday that would ban TikTok over national security concerns, unless its Chinese owners reach a deal to sell it to non-Chinese buyers by Sunday.

Although the law had overwhelming support from lawmakers months ago, many are now concerned about its potential impact and are watching to see if Trump can intervene and find a solution to keep the app operational.

TikTok has gained massive popularity for its ability to turn ordinary users, from teenage dancers to grandmothers sharing cooking tips, into global celebrities through viral videos.

Trump has also praised TikTok, crediting it with helping him connect to younger voters, which he says contributed to his election victory in November.

After discussing TikTok with Chinese President Xi Jinping on Friday, Trump told NBC News on Saturday that he might grant a 90-day delay to the ban after he assumes office.

"I think that would be, certainly, an option that we look at. The 90-day extension is something that will be most likely done, because it's appropriate," he said ahead of Monday's inauguration.

"If I decide to do that, I'll probably announce it on Monday."

The law provides for a 90-day delay if the White House can show progress toward a deal, but TikTok's parent company, ByteDance, has refused to sell.

TikTok stated late Friday that it would "go dark" unless the government "immediately provides a definitive statement to satisfy the most critical service providers assuring non-enforcement" of the law that mandates the platform’s ban.

The outgoing Biden administration has said it will leave the decision to Trump, with White House spokeswoman Karine Jean-Pierre calling TikTok’s latest statements a "stunt."

After the court ruling, TikTok CEO Shou Chew appealed to Trump, thanking him for his "commitment to work with us to find a solution."

Trump "truly understands our platform," Chew added.

TikTok has been lobbying intensely to prevent the ban’s implementation, with Chew scheduled to attend Trump’s inauguration on Monday.

The law requires Apple and Google to remove TikTok from their app stores, blocking new downloads. The companies could face penalties of up to $5,000 per user who still has access to the app.

Oracle, which hosts TikTok's servers, would also be required to enforce the ban.

It remains unclear how quickly users would be affected, and the Justice Department has indicated that enforcing the ban could take time.

None of the companies responded to requests for comment on Saturday.

Offers for TikTok

A last-minute proposal by startup Perplexity AI on Saturday offered to merge with TikTok’s U.S. subsidiary, a source familiar with the deal told AFP.

This could provide ByteDance with a solution without the need to sell the app entirely.

The plan, first reported by U.S. broadcaster CNBC, would create a new joint venture combining the assets of U.S. TikTok and Perplexity AI, which has been backed by Amazon founder Jeff Bezos.

The proposal did not disclose a price for the transaction, but the source estimated it would be valued at least $50 billion.

Frank McCourt, the former Los Angeles Dodgers owner, has also expressed interest in purchasing TikTok's U.S. operations and said he’s "ready to work with the company and President Trump to complete a deal."

Canadian investor Kevin O'Leary, involved in that offer, told Fox News that ByteDance was offered $20 billion for TikTok's U.S. operation.

He acknowledged the legal uncertainty surrounding the case, with questions remaining about whether Trump’s potential executive order could override the law.

"Congress wrote this law to be virtually president-proof," warned Adam Kovacevich, chief executive of the industry trade group Chamber of Progress.

Sarah Kreps, a government and law professor at Cornell University, explained that "If an executive order conflicts with an existing law, the law takes precedence, and the order can be struck down by the courts."

If TikTok is forced to shut down, its U.S.-based rivals, Instagram Reels and YouTube Shorts, would stand to benefit.

In response to the threat of a ban, thousands of concerned TikTok users have turned to Xiaohongshu ("Little Red Book"), a Chinese social media platform similar to Instagram.

Nicknamed "Red Note" by its American users, it was the most downloaded app on the U.S. Apple Store this week.