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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

(Adds Oracle readying TikTok going dark, TikTok telling users

it will be 'temporarily unavailable' in the U.S. on Sunday)

By David Shepardson

WASHINGTON, 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. "If I decide to

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

Users logging on late on Saturday were met with a message

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."

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 reiterated on Saturday that it was up to the

incoming 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 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.

APP, USERS PREPARE FOR GOODBYE

In the meantime, TikTok and its aficionados geared up for

goodbye.

Some on the app filmed 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.

Leaders at Oracle, the main cloud computing provider for

TikTok's U.S. operations, told some staff to prepare to shut

down servers that host U.S. TikTok data as soon as 9 p.m. ET on

Saturday (0200 GMT on Sunday) in advance of ban from Sunday, The

Information reported.

Oracle CEO Safra Catz is expected to give the final go

ahead to cut off the servers, the report added, citing a person

with direct knowledge of the plan. Oracle did not immediately

respond to Reuters' request for comment outside regular business

hours.

ENORMOUS FINANCIAL LIABILITY

The Supreme Court unanimously

upheld the ban

on Friday, saying the law was justified on national

security grounds.

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 enormous financial liability.

Experts said Trump could also direct his Justice Department

to "deprioritize" or not enforce the law but it is not clear if

that will provide enough legal protection to app store owners

Apple ( AAPL ) and Google providing crucial services for TikTok.

Trump tried to ban and force the divestment of TikTok in

2020 but was blocked by U.S. courts.

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 advertising 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 and attend a rally with Trump on

Sunday, 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.

U.S. search engine startup Perplexity AI submitted a bid on

Saturday to ByteDance for Perplexity to merge with TikTok U.S.,

a source familiar with the company's plans told Reuters.

Perplexity would merge with TikTok U.S. and create a new entity

by combining the merged company with other partners, the person

added.

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.