Trump gives TikTok three days to 'make a deal' or face its end, and more updates
US President-elect Donald Trump said on Thursday he would keep TikTok alive, but only if the Chinese-owned ByteDance has a viable deal on the table by the time he is sworn into office on Monday morning. Plus, all the latest TikTok developments of the day.
Image by Mike Blake | Reuters
US President-elect Donald Trump said on Thursday he would keep TikTok alive, but only if the Chinese-owned ByteDance has a viable deal on the table by the time he is sworn into office on Monday morning. Plus, all the latest TikTok developments of the day.
There is more wrangling on Capitol Hill as the incoming Trump administration attempts to save TikTok from America’s gallows.
Trump's incoming national security adviser, US Representative Mike Waltz, said on Thursday that a provision in the law would allow Trump to approve a 90-day extension, but only if there is "significant progress" toward the forced divestiture deal.
"We will put measures in place to keep TikTok from going dark," the Florida Congressman said. "Essentially, that buys President Trump time to keep TikTok going."
In the meantime, business billionaire Frank McCourt and a consortium of investors created through his Project Liberty organization have made a formal offer to purchase the app from ByteDance, coining it “The People’s Bid.”
Posting on X today, McCourt said a deal to purchase the short video app would be “our chance to reimagine a TikTok that works for us — one with the same content you love, but without the harmful data practices and manipulative algorithms.”
#ThePeoplesBid is our chance to reimagine a TikTok that works for us — one with the same content you love, but without the harmful data practices and manipulative algorithms.
undefined Project Liberty (@pro_jectliberty) September 16, 2024
We're proud to be leading the movement to create a better TikTok. Join us at https://t.co/xBpiyorAaj pic.twitter.com/JACg7SIp9y
Earlier this week, McCourt told Fox Business that the key to unlocking the TikTok deal is buying it without the algorithm, and Thursday told Reuters he was "open-minded" to keeping TikTok's existing investors, including the founder.
McCourt said he valued the app, without the algorithm, at $20 billion.
The US Supreme Court, which heard arguments last Friday from TikTok and US government lawyers – pitting First Amendment rights against national security concerns – could still rule to prevent the law from taking effect on Sunday, January 19th by either overturning it or issuing a pause.
Trump further said on Wednesday he would consider signing an executive order allowing ByteDance a 60- or 90-day extension to divest from TikTok, but it was not made clear if Trump actually has the power to interfere with the requirements in the ‘divest or ban’ law passed by Congress last April.
"President Trump has repeatedly expressed his desire to save TikTok,” said Trump’s transition spokesperson Karoline Leavitt on Thursday, pointing out there is “no better deal maker than Donald Trump."
Democrats try for a hail mary
Senate Democratic leader Chuck Schumer (not the biggest fan of the incoming president) also expressed his support on Thursday to come up with a solution to keep the app going before TikTok is forced to shut down the platform on Sunday.
From the floor, the New York Senator told fellow lawmakers that TikTok’s parent company ByteDance should be given more than the 271 days already allotted to find a buyer, urging fellow constituents to push through an extension while in session.
“It's clear that more time is needed to find an American buyer and not disrupt the lives and livelihoods of millions of Americans. I will work with the Trump administration and with both parties to keep TikTok alive while protecting our national security," the five-term Senator said.
Falling short of that goal, Schumer took to X to blame Republicans for the Senator's failure to make it happen. “Senate Democrats tried to pass an extension of the TikTok ban. Senate Republicans BLOCKED it,” he posted Thursday afternoon.
“We'll keep working to keep TikTok going, protect American livelihoods, and protect against Chinese Communist Party surveillance,” Schumer added.
TIKTOK:
undefined Chuck Schumer (@SenSchumer) January 16, 2025
Senate Democrats tried to pass an extension of the TikTok ban.
Senate Republicans BLOCKED it.
We'll keep working to:
Keep TikTok going
Protect American livelihoods
And protect against Chinese Communist Party surveillance. pic.twitter.com/Mg6XnLa2eu
TikTok CEO to attend inaguration
In a strange turn, TikTok CEO Shou Zi Chew apparently will be attending Trump's inauguration ceremony on January 20th, one day after the potential ban, and be placed with other lawmakers and high-profile guests on the inaugural dias, the New York Times reported on Thursday.
US Representative Frank Pallone, the top Democrat on the Energy and Commerce Committee, criticized the decision to invite Chew to the event on X.
"Trump talks a big game on China & wanted to ban TikTok—just like many Republicans voted to do," Pallone said. "But now he’s inviting TikTok's CEO to sit beside him at his inauguration even though TikTok is linked to the CCP & is a threat to our national security. What message does this send?"
Trump talks a big game on China & wanted to ban TikTok—just like many Republicans voted to do. But now he’s inviting TikTok’s CEO to sit beside him at his inauguration even though TikTok is linked to the CCP & is a threat to our national security. What message does this send? https://t.co/isSfcdegpZ
undefined Rep. Frank Pallone (@FrankPallone) January 16, 2025
Tech kings Elon Musk, Mark Zuckerberg, and Amazon’s Jeff Bezos, along with Trump's incoming cabinet and family, are among the bulk of high-profile guests expected to appear with Chew on the stage. All three donated a cool $1 million to Trump's inauguration fund in December.
Prepping for a shut down
As Washington attempts to save TikTok, hordes of content creators scramble to prepare for a financial future without the video app, rushing to let their followers know where to find them on alternate social media platforms, such as China-based apps like Lemon8 and RedNote.
Over 170 million Americans use the video app, including 7 million small businesses, according to a joint report released by TikTok and Oxford Economics about a month before US President Joe Biden signed the law into effect.
Even lawmakers who have supported the divestiture bill have banded together for a stay of the law, expressing concerns for content creators and small businesses who rely on TikTok to pay their bills.
A White House official told Reuters on Wednesday that Biden, like Trump, has no legal authority to intervene unless ByteDance presents a credible plan to divest TikTok.
The Apple and Google app stores, which have reportedly already prepped for the ban to take effect, will prevent any new TikTok downloads.
For those who have TikTok downloaded on their devices, all US companies will be barred from providing the services enabling TikTok’s distribution, maintenance, or updating the app once any ban begins.
Privately held ByteDance is about 60% owned by institutional investors such as BlackRock and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the United States, according to Reuters.