Trump Likely to Grant TikTok 90-Day Extension to Avoid US Ban- wna24
The clock is ticking toward a U.S. ban on TikTok, but users seeking clarity on what that will mean did not get much Saturday from the company that runs the popular video-sharing platform or the tech giants that offer the TikTok app in their digital marketplaces.
However, President-elect Donald Trump said in an interview with NBC News that he was considering granting an extension that might allow TikTok to keep going beyond Sunday, when a law that prohibits mobile app stores and internet hosting services from distributing TikTok to U.S. users takes effect.
The ban’s timing has complicated matters, perhaps in TikTok’s favor: the outgoing Biden administration reiterated Saturday that it considers the law’s implementation and enforcement to be the responsibility of Trump, who takes office on Monday and has pledged to “save” the app.
Under the law, TikTok’s China-based parent company, ByteDance, had nine months to sell the platform’s U.S. operation to an approved buyer. The law allows the sitting president to extend the deadline by 90 days if a sale is in progress.
Are there any viable deals on the table?
Artificial intelligence startup Perplexity AI submitted a proposal to ByteDance on Saturday to create a new entity that merges Perplexity with TikTok U.S. business, according to a person familiar with the matter. If successful, the new structure would include other investors and allow ByteDance’s existing shareholders to retain their stake in the company, the person said.
Perplexity is not asking to purchase the coveted ByteDance algorithm that feeds TikTok users videos based on their interests. The person said they thought a fair price for TikTok without the algorithm is north of $50 billion.
If the proposed merger goes through, the algorithm would need to be rebuilt. They spoke on the condition of anonymity because they weren’t authorized to speak publicly about the proposal.
In terms of potential buyers, “Shark Tank” star Kevin O’Leary recently said a consortium of investors that he and billionaire Frank McCourt put together offered ByteDance $20 billion in cash for TikTok.
Trump told NBC News that he “most likely” would give TikTok the extension after his inauguration. ByteDance previously said it would not sell, but TikTok CEO Shou Zi Chew is expected to attend Trump’s inauguration with a prime seating location.