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Trump is giving TikTok another 75-day reprieve to find a new buyer as Amazon, MrBeast, and Alexis Ohanian line up to make a deal

by TheAdviserMagazine
6 months ago
in Business
Reading Time: 4 mins read
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Trump is giving TikTok another 75-day reprieve to find a new buyer as Amazon, MrBeast, and Alexis Ohanian line up to make a deal
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WEST PALM BEACH, Fla. (AP) — President Donald Trump on Friday said he is signing an executive order to keep TikTok running in the U.S. for another 75 days to give his administration more time to broker a deal to bring the social media platform under American ownership.

Congress had mandated that the platform be divested from China by Jan. 19 or barred in the U.S. on national security grounds, but Trump moved unilaterally to extend the deadline to this weekend, as he sought to negotiate an agreement to keep it running. Trump has recently entertained an array of offers from U.S. businesses seeking to buy a share of the popular social media site, but China’s ByteDance, which owns TikTok and its closely held algorithm, has insisted the platform is not for sale.

“My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress,” Trump posted on his social media platform. “The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days.”

Trump added: “We look forward to working with TikTok and China to close the Deal.”

A spokesperson for ByteDance confirmed in a statement that the company has been discussing a “potential solution” with the U.S. government but noted that an “agreement has not been executed.”

“There are key matters to be resolved,” the spokesperson said. “Any agreement will be subject to approval under Chinese law.”

TikTok, which has headquarters in Singapore and Los Angeles, has said it prioritizes user safety, and China’s Foreign Ministry has said China’s government has never and will not ask companies to “collect or provide data, information or intelligence” held in foreign countries.

Trump’s delay of the ban marks the second time that he has temporarily blocked the 2024 law that banned the popular social video app after the deadline passed for ByteDance to divest. That law was passed with bipartisan support in Congress and upheld unanimously by the Supreme Court, which said the ban was necessary for national security.

If the extension keeps control of TikTok’s algorithm under ByteDance’s authority, those national security concerns persist.

Chris Pierson, CEO of the cybersecurity and privacy protection platform BlackCloak, said that if the algorithm is still controlled by ByteDance, then it is still “controlled by a company that is in a foreign, adversarial nation-state that actually could use that data for other means.”

“The main reason for all this is the control of data and the control of the algorithm,” said Pierson, who served on the Department of Homeland Security’s Privacy Committee and Cybersecurity Subcommittee for more than a decade. “If neither of those two things change, then it has not changed the underlying purpose, and it has not changed the underlying risks that are presented.”

The Republican president’s executive orders have spurred more than 130 lawsuits in the little more than two months he has been in office, but his order delaying a ban on TikTok has barely generated a peep. None of those suits challenges his temporary block of the law banning TikTok.

The law allows for one 90-day reprieve, but only if there’s a deal on the table and a formal notification to Congress. Trump’s actions so far violate the law, said Alan Rozenshtein, an associate law professor at the University of Minnesota.

Rozenshtein pushed back on Trump’s claim that delaying the ban is an “extension.”

“He’s not extending anything. This continues to simply be a unilateral non enforcement declaration,” he said. “All he’s doing is saying that he will not enforce the law for 75 more days. The law is still in effect. The companies are still violating it by providing services to Tiktok.

“The national security risks posed by TikTok persist under this extension, he said.

Vitus Spehar, who runs the TikTok account @UndertheDeskNews, said that although they benefit from the extension, they are “concerned about the precedent Trump has set for directing his Department of Justice to not enforce laws passed by Congress.”

“I’d like to see a bill passed to repeal the ban, and an end to this back and forth once and for all,” they said.

The extension comes at a time when Americans are even more closely divided on what to do about TikTok than they were two years ago.

A recent Pew Research Center survey found that about one-third of Americans said they supported a TikTok ban, down from 50% in March 2023. Roughly one-third said they would oppose a ban, and a similar percentage said they weren’t sure.

Among those who said they supported banning the social media platform, about 8 in 10 cited concerns over users’ data security being at risk as a major factor in their decision, according to the report.

Terrell Wade, a comedian, actor and content creator with 1.5 million followers on TikTok under the handle @TheWadeEmpire, has been trying to grow his presence on other platforms since a ban was threatened in January.

“I’m glad there’s an extension, but to be honest, going through this process again feels a bit exhausting,” he said. “Every time a new deadline pops up, it starts to feel less like a real threat and more like background noise. That doesn’t mean I’m ignoring it, but it’s hard to keep reacting with the same urgency each time.”

He is keeping up his profile on Instagram, YouTube and Facebook in addition to TikTok.

“I just hope we get more clarity soon so creators like me and consumers can focus on other things rather than the ‘what ifs,’” he said.

This story was originally featured on Fortune.com



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