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President Biden Won’t Act on TikTok Ban, to Hand Over to Donald Trump

Last Updated
Kurt Robson
Last Updated
By Kurt Robson
Edited by Samantha Dunn

Key Takeaways

  • Reports that ByteDance was considering selling TikTok to Elon Musk have been dismissed by the Chinese company.
  • TikTok slammed the reports as “pure fiction.”
  • Estimated to be valued at around $40 billion to $50 billion, TikTok has repeatedly claimed its U.S. arm is not for sale.

A government official said on Thursday that President Joe Biden will reportedly not enforce the nationwide ban on TikTok, which is set to take effect on Jan 20, and will instead hand the decision over to President-elect Donald Trump.

The news comes after it was reported that Trump was exploring options to delay the ban, including filing an executive order to extend TikTok’s lifespan in the U.S.

Biden Spares TikTok

Biden’s decision to spare TikTok for now comes after fierce pushback from both the government and free speech advocates.

Senate Democratic Leader Chuck Schumer said on Thursday he had met with Biden to urge the President to extend the deadline, claiming it would disrupt the livelihood of millions of Americans, AP News reported .

“It’s clear that more time is needed to find an American buyer and not disrupt the lives and livelihoods of millions of Americans, of so many influencers who have built up a good network of followers,” Schumer said.

However, the decision will not sit well with many in the government who had been pushing a campaign to block the app .

“TikTok is a Chinese Communist spy app that addicts our kids, harvests their data, targets them with harmful and manipulative content, and spreads communist propaganda,” Republican Sen. Tom Cotton of Arkansas said.

TikTok Dismisses Musk Sale Claims

On Tuesday, Jan. 14, a Bloomberg report  cited sources claiming Chinese officials were exploring an option for Tesla CEO Elon Musk to purchase the app before the deadline.

This scenario would see Musk’s X take control of the social media platform. The publication reported that a high-profile sale with Musk holds some appeal for TikTok and the Chinese government.

However, TikTok has vehemently denied these claims.

“We can’t be expected to comment on pure fiction,” a TikTok spokesperson told  BBC News.

Supreme Court Poised to Make Decision

Following a final hearing on Friday, Jan. 10, the Supreme Court signaled it would likely uphold TikTok’s ban.

Most of the Supreme Court justices seemed to lean towards TikTok’s security risks, which holds more weight than free speech, Bloomberg reported.

TikTok, which has over 170 million users in the U.S., will “go dark” across the country if the law goes through, according  to TikTok’s lawyer Noel Francisco.

Francisco urged the Supreme Court to consider an alternative to a complete ban, which he argued infringed on citizens’ rights to free speech.

Elizabeth Prelogar, the U.S. government lawyer, claimed China could “weaponize” TikTok at any point and cause damage to the U.S.

Speculation Grows

As the sale deadline draws closer, speculation is growing about what TikTok will do to stay active in the U.S.

The Bloomberg report  claimed ByteDance believed it could benefit from Musk’s acquisition due to his close ties to President-elect Donald Trump.

Musk has been a firm defender of TikTok, remaining active in the U.S. In April 2024, the Tesla CEO posted : “In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the X platform.”

“Doing so would be contrary to freedom of speech and expression. It is not what America stands for.”

If Musk ever took over the platform, it would mark a major win for X. Bloomberg reported that the X boss would run both social media platforms in tandem, which could positively impact X’s attempts to attract advertising.

Musk’s xAI would also benefit from the millions of pieces of data he could pull from a newly owned TikTok.

Can TikTok Be Sold to US Company?

TikTok’s U.S. operations, estimated to be valued  at around $40 billion to $50 billion, have been repeatedly labelled as ‘not for sale’ by its owners.

Although the Chinese government holds a strong share in a ByteDance affiliate, which gives it influence over the company’s strategy, TikTok claims that it only reaches China and has no jurisdiction over its U.S. arm.

However, Beijing’s export rules restrict Chinese companies from selling their software algorithms, including the one that powers TikTok.

On April. 26, Reuters reported  that TikTok would rather close in the U.S. than sell to a U.S. company.

The China-based company claimed that the algorithms needed to run TikTok were also needed for the company’s overall operations, making the sale prospect unrealistic.

With a valuation of up to $50 billion  in 2020, a potential sale would also need to be to a sizeable backer. Elon Musk, for example, only recently spent $44 billion on purchasing X, formerly Twitter, and is still paying back significant loans.

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Kurt Robson

Kurt Robson is a London-based reporter at CCN with a diverse background across several prominent news outlets. Having transitioned into the world of technology journalism several years ago, Kurt has developed a keen fascination with all things AI. Kurt’s reporting blends a passion for innovation with a commitment to delivering insightful, accurate and engaging stories on the cutting edge of technology.
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