On Jan. 17, the U.S. Supreme Court upheld a federal law requiring ByteDance, TikTok’s Chinese parent company, to divest its U.S. operations. The clock was ticking—until President Trump stepped in with a last-minute executive order, extending the deadline by 75 days.
Here’s the situation: TikTok briefly went offline for its 170 million U.S. users as ByteDance scrambled to comply with the ruling. While the app is operational again, you won’t find it in app stores until a deal is finalized. Trump’s extension gives ByteDance a lifeline, but it comes with strings attached. The president has floated the idea of the U.S. government taking a 50 per cent ownership stake in TikTok’s U.S. operations, a bold move aimed at resolving national security concerns while keeping the app accessible.
China, surprisingly, seems open to negotiation. This marks a pretty significant shift from its earlier stance against a forced sale. American investors may play a crucial role in bridging the gap, but time is running out. If ByteDance can’t secure a buyer—or if negotiations falter—TikTok could face another blackout in the U.S. market.
Why does this matter? Beyond the highly politicized national security threat, my Sunday essay, "," looks at how this might play out for content creators, SMBs, and users.
What happens next? With 75 days on the clock, it’s anyone’s guess. But one thing is certain: TikTok’s challenges are far from over. Stay tuned.
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Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named he covers tech and business for , is a regular commentator on CNN and writes a popular . He's a , and the creator of the popular, free online course, . Follow or visit .
