TikTok Faces Uncertain Future Amid Potential Ban

Donald Trump suggests a potential 90-day reprieve for TikTok from the impending ban as the app faces shutdown in the U.S. Concerns over national security loom large, with the Biden administration deciding the fate. Users and companies brace for impact as alternatives and investors eye opportunities.

In a crucial development, U.S. President-elect Donald Trump hinted at a possible 90-day extension for TikTok before the app faces a ban in the United States, as he prepares to take office on Monday. The app, which boasts 170 million American users, was bracing for a shutdown slated for Sunday.

The Biden administration's stance remains pivotal as the clock ticks closer to this deadline. TikTok, owned by China-based ByteDance, stated it would go offline Sunday unless assurances came that enforcement actions wouldn't follow the looming ban. Amid national security concerns, the platform needs to sever its ties with ByteDance according to a law recently upheld by the Supreme Court.

Uncertainty about TikTok's future triggered a shift among its predominantly younger user base toward alternatives such as RedNote. Meanwhile, competitors Meta and Snap observed a rise in shares, anticipating a surge in user engagement. Industry insiders prepped backup plans, forecasting TikTok's legal hurdles and President-elect Trump's proposal for a 'political resolution' of the situation at play.

(With inputs from agencies.)