TikTok's Rollercoaster Ride: From National Security Ban to Potential New Owners
In a dramatic turn of events, TikTok is back online after a 14-hour blackout caused by a national security ban. On January 19th, 2025, the TikTok app went dark, leaving its circa 170 million users in the USA stranded in a very dark alley.
Interestingly, the ban had an unintended consequence. Many US users migrated to a popular China-based social media platform, RedNote, also known as Xiaohongshu in China, effectively defeating the purpose of the ban. RedNote has seen a surge of about 700k new users from the US. This also caused unintended consequences in China, as observed from various posts on Tiktok UK. But, that’s a discussion outside the scope of this article.
Prior to his inauguration, President Donald Trump took credit for Tiktok’s return, promising no penalties for service providers. Many conspiracy theories have developed from this intriguing episode.
But the saga is far from over. TikTok now has 90 days to find a US buyer, or it faces another shutdown. The list of potential buyers reads like a who's who of tech giants and billionaires. It is almost like a reality show for billionaire social media moguls.
Adding to the drama, a 19-year-old set fire to a Congressman's office in protest of the ban, highlighting the intense emotions and high stakes involved. The situation is evolving rapidly, with new developments and potential buyers emerging and solutions..
Current Developments
Since the initial blackout, several high-profile figures have been suggested as being in the best position to acquire TikTok. Elon Musk, the CEO of Tesla and SpaceX, has been a prominent name in the discussions. Trump has openly stated that he would be open to Musk buying TikTok.
Mark Zuckerberg, the CEO of Meta (formerly Facebook), is another potential buyer. Interestingly, TikTok's CEO, Shou Zi Chew, used to work for Zuckerberg as a Facebook intern. This adds an intriguing layer to the competition, as Zuckerberg's company stands to gain significantly if TikTok is banned.Also note that there has been interconnectivity between TikTok and Facebook for a while. Is this an indication of future direction?
Other potential buyers include a consortium of billionaires and tech investors, who are keen to keep the app operational in the US. This all depends on the high stakes political implications of the matter.
The Road Ahead
The next 90 days will be crucial for TikTok's future in the US. The app's parent company, ByteDance, must navigate complex negotiations and regulatory hurdles to secure a deal. The outcome will not only impact TikTok's millions of users but also set a precedent for how international technology companies operate in the USA.
Tech Billionaires at Trump's Inauguration
Adding to the intrigue, several tech billionaires attended Trump's inauguration ceremony on January 20th, 2025. Notable attendees included Elon Musk, Mark Zuckerberg, Jeff Bezos, and Sundar Pichai. Their presence underscored the significant influence of the tech industry in the current administration.
$500 Billion Raised and Potential US Ownership of TikTok
Since the inauguration, Trump has announced that a staggering $500+ billion has been raised through a joint venture involving Oracle, OpenAI, and SoftBank. This venture, dubbed "Stargate," aims to build AI infrastructure in the US.
In a surprising twist, Trump has also proposed that the US government own 51% of TikTok to address national security concerns and ensure the app's continued operation in the country. This proposal has added another layer of complexity to the ongoing negotiations and potential sale of TikTok.
Stay tuned as this high-stakes drama unfolds. Who will end up owning TikTok? Only time will tell.
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