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TikTok Must Change Ownership by 4 April 2025

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TikTok Must Change Ownership by 4 April 2025

PostAuthor: Anthea » Sun Jan 12, 2025 9:11 pm

TikTok seems headed for a US ban

After the Supreme Court heard oral arguments over a law that could ban TikTok, it looks like one of its last possible lifelines is unlikely to save it from the impending ouster

TikTok will be banned from the US unless either the Supreme Court blocks the law from taking effect before the January 19th deadline or its China-based parent company, ByteDance, finally agrees to sell it. A sale — and return — of TikTok could happen after the deadline, and President-elect Donald Trump may get creative in trying not to enforce the law once he’s sworn in the next day. But the longer it takes, the shakier things look for TikTok.

Bloomberg Intelligence senior litigation analyst Matthew Schettenhelm gave TikTok a 30 percent chance of winning at the Supreme Court before oral arguments, but he lowered that prediction to just 20 percent after hearing the justices’ questioning. TikTok made a last-ditch plea for the court to issue an administrative stay without signaling a ruling on the law’s merits, something Trump has suggested so he can attempt to broker a TikTok sale. Schettenhelm says that’s unlikely — the court does not tend to issue that kind of pause just because of a change in administration, he adds, and it’s unlikely to want to set that precedent.

A short order on the case could come as soon as Friday afternoon, after the justices are scheduled to meet. The court is also scheduled to release orders on Monday morning, though Schettenhelm warns not to read into it if nothing is released by then — it may just mean they’re fleshing out their reasoning in a longer written order.

Trump has said he’d like to save the app, and in theory, he could declare he won’t enforce the divest-or-ban law. But Justice Sonia Sotomayor pointed out that even if he chooses not to enforce the law, that may not provide sufficient protection for companies like Apple and Google — which could be fined $5,000 per user that accesses TikTok if they maintain it in their app stores. US Solicitor General Elizabeth Prelogar said the statute of limitations is five years; those companies would still be violating the law as long as it remains on the books, and they could face penalties even after Trump leaves office, should the next administration choose to enforce it.

“I think those companies would be undertaking enormous risk to not comply with the law on the hope that President Trump doesn’t enforce it against them,” Schettenhelm says. “You get into the hundreds of billions of dollars of potential liability. And even if President Trump is saying, ‘don’t worry about it, I’m not going to enforce it against you,’ do you really want to take the chance that he’s not going to change his mind on that? Do you really want to give him that level of leverage over your company? I doubt it.”

“I don’t see another social media company that is similarly situated to TikTok.”

Schettenhelm doesn’t believe a ruling against TikTok would create a precedent that threatens US-based social media companies. “I don’t see another social media company that is similarly situated to TikTok,” he says, pointing out that the arguments largely centered around ownership. Foreign-owned e-commerce companies like Shein and Temu that came up might be another story. But, he says, “none of that really jumped out as an imminent risk just because of this argument.”

By contrast, Cornell University law professor and First Amendment expert Gautam Hans agrees the justices are unlikely to strike down the law, but he worries that such a ruling could have broader implications for other companies. During arguments, the justices and attorneys for TikTok and its users discussed hypotheticals about whether allowing a ban on certain types of corporate structure (like ownership by a Chinese parent company) would allow for backdoor speech regulations — including demanding a company’s owner sell it off to punish it for protected speech. But these concerns didn’t appear to be deal-breakers for the court.

“What remains unfortunate is the credulity with which many of the justices treated this law, which clearly implicates free speech rights on underspecified national security grounds,” Hans said in a statement. “I don’t think the distinction on foreign and domestic ownership is sufficiently stable to allay my concerns that a ruling upholding the TikTok ban creates a very slippery slope.”

https://www.theverge.com/2025/1/10/2434 ... -arguments
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TikTok Must Change Ownership by 4 April 2025

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Re: TikTok still seems headed for a ban in US

PostAuthor: Anthea » Thu Jan 16, 2025 2:18 am

TikTok to be banned in US this weekend

TikTok — one of the biggest entertainment and social media platforms in the world — is due to be blocked in the United States this weekend

    If TikTok's China-based parent company, ByteDance, doesn't sell its US operations, and if the US Supreme Court doesn't step in, the ban will take effect this Sunday, January 19
Unnamed sources have told Reuters news agency that TikTok plans to shut down its app nationwide when the ban hits.

The following day, President-elect Donald Trump will be inaugurated. And, despite attempting his own ban during his first term in 2020, he's now vowed to "save TikTok".

It all sounds pretty extraordinary so we asked Tom Barrett, emerging-technology researcher at the United States Studies Centre, to help us unpack it.

Will the US really ban TikTok?

The US Congress has already passed the law to ban TikTok.

In March 2024, the Protecting Americans from Foreign Adversary Controlled Applications Act passed the House of Representatives.

The House at that time was held by the Republicans, and the bill was then supported by the Democrat-controlled Senate, before President Joe Biden signed it into law.

Why is the US banning TikTok?

The act is framed around a foreign adversary — a country that is deemed a threat to the United States' national security — having control over the app.

TikTok has roughly 170 million American users, which means it has data from almost half the US population.

Mr Barrett says the US government is worried about China's "collection of that information, access to it, and subsequent use of it".

There are other major Chinese digital platforms in the US: It's estimated 152 million Americans use online shopping hub Temu every month, which has their home addresses and other personal data TikTok doesn't have access to.

However, Mr Barrett says the US government is particularly worried about the social media aspect of TikTok, bringing with it the possibility of disinformation and propaganda campaigns.

"[TikTok's] ability to influence and manipulate their audience is that extra layer that makes it particularly concerning to Washington," Mr Barrett says.

When will TikTok be banned?

This Sunday, January 19, is the deadline for ByteDance to sell its US operations to an American company, or face a nationwide ban.

There's still the possibility of a last-minute sale before then, which would need China's blessing.

A close up of the TikTok logo on a phone screen. The logo looks like a musical note on a black background.

TikTok could be banned as soon as Sunday

While there have been rumours that tech billionaire Elon Musk is in talks with the company, this has been denied by TikTok.

The US Supreme Court heard arguments last weekend around the ban's implications for freedom of speech and might still review or delay a ban. However, attitudes in the courtroom indicate they're likely to side with the US government and uphold the law.

How will the ban work in practice?

Americans aren't going to be jailed for looking at memes on TikTok.

Instead, the law puts the burden on app stores and cloud service providers, who cannot "distribute, maintain, or update" the application.

These companies face penalties of up to $US5,000 per user if they're found to be in violation of the law — fines that could end up in the billions, given the app's current popularity.

That means Google and Apple are likely to remove TikTok from their app stores, and Americans who don't already have TikTok won't be able to download it.

Users who have the app will be able to keep it, but won't be able to update it, making it unusable over time.

It's possible, though, that American users who try to open the app will see a message saying the service is no longer available in the country. This happens to users in India, which banned the app in 2020.

Cloud service providers are also held accountable under the new law, including Oracle, the American tech company that hosts most of TikTok's US data.

Back in 2022, amid growing concerns around Chinese access to US data, TikTok began moving everything produced by American users to Oracle's servers, which Mr Barrett explains was essentially "a pitch to the US government to say, 'Hey, we're trying'".

Oracle may simply stop hosting this data on their servers, which could slow down the app for American users if it has to rely on non-US servers, or speed up a full shutdown.

And, finally, Mr Barrett says it's possible TikTok will pre-empt all this by simply switching off the app themselves, with American users cut off overnight, an option Reuters has flagged the company is preparing for.

Reuters' sources said a shutdown would protect TikTok service providers from legal liability. It would also allow TikTok to restore service for US users in a relatively short time if Trump opted to roll back any ban once he takes office.

Can't Americans just use a VPN?

A Virtual Private Network, or VPN, encrypts your data and hides your IP address.

"VPNs are pretty common practice around the world for different reasons, including in other countries where social media platforms are unavailable," Mr Barrett says.

He says there's likely to be an uptick in VPN usage if the ban comes into effect on Sunday. But he doubts they're a long-term solution.

"Again, you run into the issues of your app no longer working or updating, and there's other variables regarding the location your app store registers you being in, which could be different to where your internet connection is coming from."

Can Trump stop the US TikTok ban?

The TikTok ban passed with bipartisan support, but Trump has vowed to save it.

According to Mr Barrett, the returning president has two main options.

Firstly, after his inauguration, Trump could instruct the attorney-general to not enforce the ban, opening the door for companies like Apple, Google and Oracle to maintain access to TikTok.

"It's unlikely, if you're a compliance officer in one of those large companies that are at risk of being charged these penalties, that you would continue to provide [TikTok access] and break the law with the hope that the attorney-general does not enforce the ban," Mr Barrett says.

Trump is viewed from below at a campaign rally, in front of an American flag.

Donald Trump vowed to save TikTok

Trump could use the language of the law itself around "qualified divestiture". This means ByteDance could take certain steps to show a deal for TikTok with a US buyer is underway, and that could be enough for Trump to declare that TikTok is no longer controlled by a foreign adversary.

However, this is unlikely to happen until after Trump takes office, when the ban will already be in effect.

So, while it could reverse the ban, it's unclear how this would play out for TikTok and its users: It might go straight back online, or the new buyer might want to make their own changes, delaying the app's availability.

Mr Barrett says the law puts it "up to the president to determine when a qualified divestiture has taken place".

Even if a deal was agreed, China could still prevent it, and Mr Barrett says they've indicated they'll "veto any attempts" at a sale.

"Even if it was sold, the algorithm wouldn't necessarily be sold with it, which is considered the core of what makes TikTok, TikTok."

What could this mean for Australia?

How this all affects Australia will depend on what happens over the next week.

If Americans can no longer use TikTok, we won't get new uploads from some of our favourite creators, and Australian influencers, artists and brands would lose their US audience.

TikTok users have already launched their own version of protest, downloading the Chinese "knock-off of TikTok" RedNote, where they call themselves "TikTok refugees".

Mr Barrett noted this pointed to the weakness of the current US strategy of "whack-a-mole bans against new platforms, rather than a more strategic or comprehensive approach to tackling the perceived risks and protecting users".

Whether Australians follow suit and migrate to RedNote, or to Meta products like Instagram, is another story, and one that may be determined by our own government's push to ban TikTok too.

https://www.abc.net.au/news/2025-01-16/ ... /104819928
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Re: TikTok still seems headed for a ban in US

PostAuthor: Anthea » Thu Jan 16, 2025 11:50 am

YouTube star MrBeast offer ready to buy TikTok

MrBeast has revealed he has an 'offer ready' to buy TikTok ahead of its proposed ban in the US later this week

Time is ticking on whether or not TikTok is to survive in the United States as of Sunday (19 January) this week.

The prohibition on the social media platform comes after Congress passed a bipartisan bill in April last year, approved by President Joe Biden, to sell the app to a new owner or it would be shut down.

Federal officials argued the platform presents a 'national security threat' to the country due to its supposed links with China.

Officials allege ByteDance, the company that owns TikTok, has access to the data of approximately 170 million users in the US, putting that data at risk if China asks the company to hand it over.

The deadline to sell falls on 19 January - just one day before Donald Trump is set to be sworn in as the new president.

Millions of TikTokers have been protesting the ban, arguing that it would devastate the lucrative creator economy that depends on it - and thousands more have been racing to alternative platforms like RedNote, another short-form video app from China.

Yet, while the deadline is inching nearer with just three days to go, there is hope yet as famous YouTuber, MrBeast said on Twitter this week: "Okay fine, I'll buy TikTok so it doesn’t get banned."

With more than 340 million subscribers, the 26-year-old star, whose real name is James Stephen 'Jimmy' Donaldson, has the most subscribers of any YouTube channel and is the third-most-followed creator on TikTok.

The host of 'Beast Games', he is known for staging elaborate challenges and giving away eye-watering sums of money to strangers.

According to Celebrity Net Worth, the YouTuber has a whopping net worth of approximately $1 billion, meaning he has a better chance than most at being able to afford the app, though many people considered his 'offer' was a joke.

Hours after his Tweet went viral, he followed up: "Unironically I’ve had so many billionaires reach out to me since I tweeted this, let’s see if we can pull this off."

Now, a suited and booted MrBeast appears to be taking his proposal seriously as he posted an update to TikTok that he actually has an offer prepared and ready to go.

In the 12-second clip, he said: "Just got out of a meeting with a bunch of billionaires, TikTok, we mean business."

He didn't reveal much from there, such as who with billions of dollars could be involved in the apparent rescue mission, but the star did seem to have legal counsel.

Pointing to a man with a briefcase in the video, MrBeast continues: "This is my lawyer right here. We have an offer ready for you. We wanna buy the platform."

Meanwhile, a slideshow from the meeting was still visible in the background, which also read: "How we buy TikTok."

The potential problem MrBeast could come up against is if ByteDance doesn't want to sell or won't agree to any such sale whatsoever.

But the YouTuber pleaded: "America deserves TikTok. Give me a seat at the table.

"Let me save this platform, TikTok."

He also captioned the video: "TikTok check your inbox."

His followers were quick to celebrate the development on TikTok, writing: "Save us all MrBeast," and calling him 'the GOAT'.

https://www.unilad.com/technology/socia ... 5-20250116
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Re: MrBeast has revealed he has an offer ready to buy TikTok

PostAuthor: Anthea » Fri Jan 17, 2025 4:32 pm

TikTok in US to be banned

The Supreme Court has upheld a law that would ban TikTok in the US unless its China-based parent company ByteDance sells the platform by 19 January.

ByteDance challenged the law and argued it violates free speech protections for the app's more than 170 million users in the US.

But that argument was rejected by the nation's highest court, meaning TikTok must now find an approved buyer for the American version of the app or face a ban.
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Re: The Supreme Court upheld decision to ban TikTok

PostAuthor: Anthea » Sun Jan 19, 2025 10:00 am

TikTok goes offline in US

TikTok has gone offline in the US, hours before a new law banning the platform was due to come into effect

A message appearing on the app for US users said a law banning TikTok had been enacted, meaning "you can't use TikTok for now".

The video-sharing app was banned over concerns about its links to the Chinese government and had been given a deadline of 19 January to be sold to an approved US buyer.

President Joe Biden had said he would leave the issue to his successor, Donald Trump. Trump has said he will "most likely" give TikTok a 90-day reprieve from a ban once he takes office on Monday.

"The 90-day extension is something that will be most likely done, because it's appropriate," Trump told NBC News on Saturday.

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

Users reported the app had also been removed from both Apple and Google's US app stores and TikTok.com was not showing videos.

"We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office," the message displayed after the ban went into force read.

The Supreme Court on Friday upheld the law, passed in April last year, banning the app in the US unless its China-based parent company, ByteDance, sold the platform by Sunday, which it has not done.

TikTok has argued that the law violates free speech protections for its 170 million users in the country.

After the ruling, TikTok's chief executive, Shou Zi Chew, appealed to Trump, thanking him for his "commitment to work with us to find a solution."

Mr Chew is expected to attend Trump's inauguration on Monday.

In the hours leading up to the social media platform going offline, content creators had been posting videos to say goodbye to their followers.

Creator Nicole Bloomgarden told the BBC that not being on TikTok would result in a significant salary cut.

Another user, Erika Thompson, said educational content on the platform would be the "biggest loss" for the community.

TikTok users were met with a message earlier on Saturday that said the law would "force us to make our services temporarily unavailable. We're working to restore our service in the U.S. as soon as possible."

https://www.bbc.co.uk/news/articles/cz6p1g54q85o
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Re: TikTok has gone offline in US due to new law banning it

PostAuthor: Anthea » Mon Jan 20, 2025 1:51 am

TikTok restoring services in US

TikTok is resuming services to its 170 million users in US after President-elect Donald Trump said he would issue an executive order to give the app a reprieve when he takes office on Monday

On Saturday evening, the Chinese-owned app stopped working for American users, after a law banning it on national security grounds came into effect.

Trump, who had previously backed a ban of the platform, promised on Sunday to delay implementation of the law and allow more time for a deal to be made. TikTok then said that it was in the process of "restoring service".

Soon after, the app started working again and a popup message to its millions of users thanked Trump by name. In a statement, the company thanked the incoming president for "providing the necessary clarity and assurance" and said it would work with Trump "on a long-term solution that keeps TikTok in the United States".

TikTok CEO Shou Chew is expected to attend Trump's inauguration Monday.

Posting on Truth Social, a social media platform he owns, Trump said on Sunday, external: "I'm asking companies not to let TikTok stay dark! I will issue an executive order on Monday to extend the period of time before the law's prohibitions take effect, so that we can make a deal to protect our national security."

TikTok's parent company, Bytedance, previously ignored a law requiring it to sell its US operations to avoid a ban. The law was upheld by Supreme Court on Friday and went into effect on Sunday.

It is unclear what legal authority Trump will have to delay the implementation of a law that is already in effect. But it expected that his government will not enforce the ban if he issues an executive order.

It's an about-face from his previous position. Trump had backed a TikTok ban, but has more recently professed a "warm spot" for the app, touting the billions of views he says his videos attracted on the platform during last year's presidential campaign.

For its part, President Joe Biden's administration had already said that it would not enforce the law in its last hours in office and instead allow the process to play out under the incoming Trump administration.

But TikTok had pulled its services anyway on Saturday evening, before the swift restoration of access on Sunday.

The short-form video platform is wildly popular among its many millions of US users. It has also proved a valuable tool for American political campaigns to reach younger voters.

Under the law passed last April, the US version of the app had to be removed from app stores and web-hosting services if its Chinese owner ByteDance did not sell its US operations.

TikTok had argued before the Supreme Court that the law violated free speech protections for its users in the country.

The law was passed with support from both Republicans and Democrats in Congress and was upheld unanimously by Supreme Court justices earlier this week.

The issue exposes a rift on a key national security issues between the president-elect and members of his own party. His pick for Secretary of State, Marco Rubio, had vocally supported the ban.

"TikTok extended the Chinese Communist Party's power and influence into our own nation, right under our noses," he said last April. But he seemed to defer to the president-elect when a journalist asked if he supported Trump's efforts to restore the ban.

"If I'm confirmed as secretary of State, I'll work for the president," he told Punchbowl media last week.

After Trump intervened on Sunday morning, Senate Intelligence Committee Chair Tom Cotton, a Republican senator from Arkansas, broke with Trump by saying that any company that helps TikTok stay online would be breaking the law.

"Any company that hosts, distributes, services, or otherwise facilitates communist-controlled TikTok could face hundreds of billions of dollars of ruinous liability under the law, not just from DOJ, but also under securities law, shareholder lawsuits, and state AGs," he wrote on social media.

An executive order that goes against the law could be fought in court.

Several states have also sued the platform, opening up the possibility to TikTok being banned by local jurisdictions, even if it is available nationally.

Although the platform went live again on Sunday for existing users, the question of whether third-parties - hosting platforms or app stores like Google or Apple - could support TikTok in the US remains murky, says University of Richmond law professor Carl Tobias. The app had been removed from those stores in anticipation of the ban.

"It is murky," he told the BBC.

In a post on Truth media, Trump promised to shield companies from liability, opening the door to TikTok being available on Apple and Google again.

"The order will also confirm that there will be no liability for any company that helped keep TikTok from going dark before my order," the president-elect said on Truth Social Sunday.

But during the Supreme Court hearings, Solicitor General Elizabeth Prelogar was adamant that an executive order cannot change the law retroactively.

"Whatever the new president does, doesn't change that reality for these companies," Justice Sonia Sotomayor said during the hearings.

"That's right," Prelogar said.

Professor Tobias said that the law does include a provision that would allow the president to postpone the ban for up to 90 days, if he can show that the company is making substantial progress on alleviating national security issues. But, he said, it's not clear whether those conditions have been met.

"The best thing Trump could do is work with Congress, and not potentially be in violation of the law or have any questions left hanging," he said.

"I don't know that we're going to know a whole lot more until we see that executive order."

https://www.bbc.co.uk/news/articles/cjde3p0rnjgo
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Re: TikTok restoring services in US after Trump pledge

PostAuthor: Anthea » Sat Jan 25, 2025 12:25 pm

Musk, MrBeast, Larry Ellison
    Who might buy TikTok?
Jimmy Donaldson - aka MrBeast - was jubilant as he told his tens of millions of TikTok followers about his bid to buy the platform

"I might become you guys' new CEO! I'm super excited!" Donaldson said from a private jet. He then proceeded to promise $10,000 to five random new followers.

The internet creator's post has been viewed more than 73 million times since Monday. Donaldson said he could not share details about his bid, but promised: "Just know, it's gonna be crazy."

Donaldson is one of multiple suitors who have expressed interest in purchasing TikTok, the wildly popular social media platform that's become the subject of a fast-moving political drama in the United States.

Last year, then-President Joe Biden signed a law that gave TikTok's China-based parent company ByteDance until 19 January to sell the platform or face a ban in the United States.

The legislation addressed concerns about TikTok's links to the Chinese government and worries about the app being a national security risk.

President Donald Trump has floated the possibility of a joint venture.

"I would like the United States to have a 50% ownership position," he said in a Truth Social post on Sunday. "By doing this, we save TikTok, keep it in good hands and allow it to [stay up]."

Trump has since signed an executive order that allows the app to stay operational for another 75 days.

Earlier this month, Bloomberg reported, external that China was considering a TikTok sale to Elon Musk, the world's richest man and a close ally of President Trump, who already owns the social media platform X.

Musk himself wrote, external on X this week that while he has long been against a TikTok ban, "the current situation where TikTok is allowed to operate in America, but X is not allowed to operate in China is unbalanced. Something needs to change".

At a news conference Tuesday, Trump was asked by a reporter if he would be open to Musk buying the platform.

"I would be if he wanted to buy it, yes," the president replied.

"I'd like Larry to buy it, too," Trump added, referring to Oracle chairman Larry Ellison, a long-time Trump supporter who was on stage with him for a separate announcement.

Oracle is one of TikTok's main server providers, managing, external many of the data centres where billions of the platform's videos are stored.

Last year, Oracle warned that a TikTok ban could hurt its business. The cloud computing giant was also a leading contender to buy the social media platform in 2020, back when Trump was trying to ban it.

Billionaire investor Frank McCourt has also expressed interest in TikTok, and has been doing media interviews about the prospect for several months.

McCourt has said he wants TikTok to run on technology overseen by the Project Liberty Institute, which he founded. He has been critical of data collection practices of social media companies.

Project Liberty is bidding for TikTok without its proprietary algorithm. McCourt told, external CNBC this week that Project Liberty is "not interested in the algorithm or the Chinese technology" even as he acknowledged that the platform is "worth less" without it.

Ultimately, President Trump is likely to have a major role in selecting a US buyer of TikTok.

"It's going to be a winner that's likely to be politically sympathetic to President Donald Trump," said Anupam Chander, a law professor at Georgetown University.

Prof Chander said the 50-50 joint ownership model does not comport with the law's requirements, which might prompt Trump to pressure Congress into revising the law.

For now, the platform's future remains in limbo.

Prof Chander said the Biden administration made an "unforced error" by allowing the law to give the president outsized control over who owns TikTok.

"It was a terrible idea to put the future of a massive information platform into this political maelstrom," Prof Chander said.

https://www.bbc.co.uk/news/articles/cvge68ymej3o
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Re: TikTok restoring services in US after Trump pledge

PostAuthor: Anthea » Thu Jan 30, 2025 11:49 pm

US companies interested in acquiring TikTok

President Donald Trump confirmed Microsoft is one of the U.S. companies expressing interest in acquiring TikTok, as the popular video-sharing app faces the threat of a potential ban in April. The president’s comments come after Congress set the requirement for TikTok to change ownership in order to remain operational in the U.S.

“I would say yes,” Trump told reporters when asked if Microsoft was among the companies looking to take control of TikTok. Trump also mentioned that other companies have shown interest in purchasing the app but declined to specify which ones. “I like bidding wars because you make your best deals,” he added, speaking to reporters aboard Air Force One while traveling from Miami to Washington, D.C.

Representatives for both Microsoft and TikTok did not immediately respond to requests for comment on the matter.

In a separate development, Perplexity AI, an artificial intelligence startup, recently proposed a new arrangement where the U.S. government could own up to 50% of a new entity formed by merging Perplexity AI with TikTok’s U.S. operations. This proposal was presented to ByteDance, and discussions are ongoing, according to a person familiar with the matter.

    Several high-profile figures, including billionaire Frank McCourt and former U.S. Treasury Secretary Steven Mnuchin, have expressed public interest in acquiring TikTok’s U.S. business. Trump also mentioned that he has had private discussions with “many people” regarding a potential deal
The controversy over TikTok’s ownership stems from national security concerns. Lawmakers and government officials across both parties have raised alarms about the app’s Chinese ownership and the potential for manipulation or surveillance, particularly given TikTok’s popularity among American users, with over 170 million users in the U.S. alone.

Initially, Trump had pushed for a TikTok ban in 2020, but he reversed his stance last year after acknowledging the platform’s influence, particularly among young voters during the 2020 presidential election. Microsoft, along with Walmart, had previously attempted to acquire TikTok’s U.S. operations during Trump’s first term, but the deal ultimately fell through. Microsoft CEO Satya Nadella later described the situation as the “strangest thing I’ve ever worked on.”

As the deadline for TikTok’s ownership change looms, the pressure mounts for ByteDance to negotiate a solution that would satisfy U.S. national security concerns while allowing the app to continue operating in the country.

Earlier last week, President Trump extended TikTok’s deadline to find a new owner, pushing the date from January 19 to April 4, 2025. Trump has repeatedly stated his goal for the new ownership arrangement to include a 50% stake for the U.S. government in TikTok, which is owned by the Chinese company ByteDance. However, the details of the arrangement remain unclear, including whether the U.S. government would gain control of the app or if another U.S.-based entity would oversee its operations.

In a separate development, Perplexity AI, an artificial intelligence startup, recently proposed a new arrangement where the U.S. government could own up to 50% of a new entity formed by merging Perplexity AI with TikTok’s U.S. operations. This proposal was presented to ByteDance, and discussions are ongoing, according to a person familiar with the matter.

Several high-profile figures, including billionaire Frank McCourt and former U.S. Treasury Secretary Steven Mnuchin, have expressed public interest in acquiring TikTok’s U.S. business. Trump also mentioned that he has had private discussions with “many people” regarding a potential deal.

The controversy over TikTok’s ownership stems from national security concerns. Lawmakers and government officials across both parties have raised alarms about the app’s Chinese ownership and the potential for manipulation or surveillance, particularly given TikTok’s popularity among American users, with over 170 million users in the U.S. alone.

Initially, Trump had pushed for a TikTok ban in 2020, but he reversed his stance last year after acknowledging the platform’s influence, particularly among young voters during the 2020 presidential election. Microsoft, along with Walmart, had previously attempted to acquire TikTok’s U.S. operations during Trump’s first term, but the deal ultimately fell through. Microsoft CEO Satya Nadella later described the situation as the “strangest thing I’ve ever worked on.”

As the deadline for TikTok’s ownership change looms, the pressure mounts for ByteDance to negotiate a solution that would satisfy U.S. national security concerns while allowing the app to continue operating in the country.

https://www.financialexpress.com/world- ... t/3728436/
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