TikTok Return: 75-day reprieve from its ban in the U.S.
One of the first major decisions Donald Trump made after assuming office on January 20, 2025, was to offer TikTok a 75-day reprieve from its ban in the U.S. The background to this is a law passed by the Biden administration to ban TikTok, which was upheld by the U.S. Supreme Court. The court ruled that the ban could only be lifted if TikTok’s parent company, ByteDance (based in China), sells the app to an American company.
While TikTok’s services began shutting down on January 19-20, Trump extended a 75-day window, stating, “If Elon Musk wants to buy it, he can. I’d also be interested in purchasing it myself.” He added that if the ban isn’t lifted by then, TikTok would essentially be worthless, but if approved, its value could be as high as a trillion dollars.
So, what happens next? Will ByteDance sell its stake within these 75 days? Who will buy TikTok—Musk, Trump, or someone else? And could this deal lead to TikTok returning to India? Let’s break it down.
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TikTok Return: Why Was TikTok Banned in the U.S. Despite 170 Million Users?
The story of TikTok’s U.S. ban goes back to August 2020, during Trump’s first term as president, when he raised concerns about national security risks posed by the app. Trump pressured companies like Microsoft to buy TikTok, but no deal materialized. When Biden took office, the push to ban TikTok gained momentum, leading to a law signed on April 24, 2024, mandating a TikTok ban within six months. The Supreme Court upheld the ban, with a January 19, 2025, deadline.
On January 20, Trump extended the deadline by 75 days, pushing ByteDance to sell 50% of TikTok to an American company or individual.
Some analysts suggest Trump may have used the ban to drive down TikTok’s market value. Initially valued between $150 billion and $200 billion, it’s speculated that Trump could buy TikTok for a much lower price—around $40 billion to $50 billion—due to the ongoing ban.
TikTok Return: Who Will Buy TikTok: Trump, Musk, or Someone Else?
When asked about the possibility of buying TikTok, Trump confirmed on January 21 that he would be open to the idea, saying, “I have the right to pursue this deal.” However, it’s unclear whether Trump would purchase TikTok using personal funds or if the deal would involve government resources.
Elon Musk is also a prominent figure in this discussion. Three key reasons make him a strong candidate:
- Close Relationship with Trump: Musk and Trump are well-connected, and Trump has already mentioned that Musk could take the lead on the deal.
- Musk’s Wealth: As the world’s richest person, with a net worth of over $427 billion, Musk has the financial means to make such a purchase.
- Interest in Social Media: Musk’s acquisition of Twitter demonstrated his interest in social platforms, and he’s well-equipped to manage TikTok.
Aside from Musk and Trump, several other potential buyers have expressed interest, including Oracle Chairman Larry Ellison, YouTube star MrBeast, and other tech entrepreneurs such as Jesse Tinsley and Kevin O’Leary.
TikTok Return: Could TikTok Return to India?
The question of whether TikTok will make a comeback in India hinges on the reasons behind its initial ban. On June 29, 2020, India banned 59 Chinese apps, including TikTok, citing national security concerns and the risk to user privacy. The Indian government feared that user data was being sent to Chinese servers, which could pose a security threat.
If Elon Musk were to buy TikTok, the app could potentially be unbanned in India. Since the U.S. government would then own the platform, the data of Indian users would be stored in America, which might ease concerns over data security. Furthermore, Musk, with his strong ties to the Trump administration, could exert influence on India to lift the ban.
In the past, U.S.-based platforms like Google and Facebook have collected data under the scrutiny of U.S. agencies like the CIA, with no major incidents of data misuse reported. If Musk takes control of TikTok, the shift in ownership to an American company could help rebuild trust in the platform, possibly paving the way for its return to the Indian market.
Conclusion
In the next 75 days, a lot could happen. Whether it’s Musk, Trump, or another buyer, TikTok’s future in the U.S. and potentially in India hinges on this high-stakes deal. Stay tuned to see who makes the move, and how it will shape the app’s global presence.
