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Trump says he may give TikTok a 90-day reprieve Monday
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Trump says he may give TikTok a 90-day reprieve Monday
Jan 18, 2025 10:44 AM

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White House dismisses TikTok's comment as a stunt

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Supreme Court upholds ban, Biden unlikely to intervene

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Users explore alternatives, rivals see share rise

(Changes headline, adds Chinese statement in paragraph 8)

By David Shepardson

Jan 18 (Reuters) - U.S. President-elect Donald Trump

said on Saturday he would "most likely" give TikTok a 90-day

reprieve from a potential ban after he takes office on Monday,

as the app with 170 million American users buzzed with nervous

anticipation ahead of a shutdown set for Sunday.

"The 90-day extension is something that will be most likely

done, because it's appropriate," Trump told NBC in an interview.

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

The Chinese-owned app, which has captivated nearly half of

all Americans, powered small businesses and shaped online

culture, said on Friday it will go dark in the U.S. on Sunday

unless President Joe Biden's administration provides assurances

to companies such as Apple ( AAPL ) and Google that

they will not face enforcement actions when a ban takes effect.

Under a law passed last year and upheld on Friday by a

unanimous Supreme Court, the platform has until Sunday to cut

ties with its China-based parent ByteDance or shut down its U.S.

operation to resolve concerns it poses a threat to national

security.

The White House dismissed TikTok's Friday comment as a

stunt, reiterating on Saturday that it was up to the incoming

Trump administration to take action, increasing the likelihood

of a shutdown on Sunday.

"We see no reason for TikTok or other companies to take

actions in the next few days before the Trump administration

takes office on Monday," press secretary Karine Jean-Pierre said

in a statement.

TikTok did not immediately respond to a request for comment

on the new White House statement.

The Chinese embassy in Washington on Friday accused the U.S.

of using unfair state power to suppress TikTok. "China will take

all necessary measures to resolutely safeguard its legitimate

rights and interests," a spokesperson said.

Users on the app were saying their goodbyes, some filming

themselves frantically scrolling or sharing final secrets with

their followers ahead of the ban.

"Does anyone know if the TikTok ban goes into effect on

Sunday or if we have all of Sunday to like brain rot still? I

need to plan accordingly," fitness influencer Britany Williams

said in a video to her 64,000 followers.

Supreme Court justices upheld the ban on Friday in a

unanimous decision.

Without a decision by Biden to formally invoke a 90-day

delay in the deadline, companies providing services to TikTok or

hosting the app could face legal liability. It is not clear if

TikTok's business partners, including Apple ( AAPL ), Alphabet's Google

and Oracle, will continue doing business with it before

Trump is inaugurated on Monday.

Trump helped initiate the U.S. moves against TikTok at the

end of his first term, telling reporters he would ban the app.

USERS MOVE TO ALTERNATIVES

Uncertainty over the app's future had sent users - mostly

younger people - scrambling to alternatives including

China-based RedNote. Rivals Meta and Snap had

also seen their shares rise this month ahead of the ban, as

investors bet on an influx of users and ad dollars.

Marketing firms reliant on TikTok have rushed to prepare

contingency plans this week in what one executive described as a

"hair on fire" moment after months of conventional wisdom saying

that a solution would materialize to keep the app running.

There have been signs TikTok could make a comeback under Trump,

who has said he wants to pursue a "political resolution" of the

issue and last month urged the Supreme Court to pause

implementation of the ban.

TikTok CEO Shou Zi Chew plans to attend the U.S. presidential

inauguration on Monday and sit among high-profile guests invited

by Trump, a source told Reuters.

Suitors including former Los Angeles Dodgers owner Frank McCourt

have expressed interest in the fast-growing business that

analysts estimate could be worth as much as $50 billion. Media

reports say Beijing has also held talks about selling TikTok's

U.S. operations to billionaire and Trump ally Elon Musk, though

the company has denied that.

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 U.S.

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