Trump's $50B Plan to Save Social Media Giant "TikTok"
As TikTok went dark across America on a Sunday in 2025, President-elect Donald Trump emerged with a solution to the social media crisis that had captured the nation's attention.
"By doing this, we save TikTok, keep it in good hands,"
Trump declared on Truth Social, proposing a bold joint venture where the United States would claim 50% ownership of the platform. His announcement of an extended deadline and a proposed joint venture solution sent ripples through the tech industry, offering a glimpse of hope to the 170 million Americans who had made TikTok their digital stage.
"The app's value could surge to hundreds of billions of dollars - maybe trillions."
TikTok quickly reassured its dismayed users:
"We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned!"
But industry experts remained skeptical.
"Congress wrote this law to be virtually president-proof,"
Warned Adam Kovacevich, chief executive of Chamber of Progress, highlighting the complex legal challenges ahead. The law mandated severe penalties - up to $5,000 per user - for companies like Apple, Google, and Oracle if they continued hosting or enabling access to the app. The proposed 50-50 joint venture structure would set a precedent, potentially reshaping how foreign tech companies operate in the US market.
The crisis had sparked a flurry of last-minute solutions. Perplexity AI, a rising star in the tech world, proposed a merger worth at least $50 billion. Former Los Angeles Dodgers owner Frank McCourt threw his hat in the ring with an offer to purchase TikTok's US operations.
For American competitors, this meant adapting to a new reality. The proposed joint venture wouldn't just keep TikTok alive; it would create a hybrid entity with both Chinese innovation and American oversight. Some saw opportunity in this complexity.
"If TikTok has to split ownership, maybe their algorithm advantages won't be as strong," mused a senior executive at a rival platform, speaking on condition of anonymity.
The story was far from over. As Monday's inauguration approached, tech lawyers scrambled to understand how this joint venture would satisfy the law's strict requirements about "foreign adversary controlled applications." Chinese officials, who had steadfastly supported ByteDance's control, remained silent but watchful.
FINAL VERDICT:
While negotiations continue, American users have already begun adapting to the uncertainty. In a remarkable shift, thousands have migrated to Xiaohongshu ("Little Red Book"), another Chinese social media platform. Known as "Red Note" by its new American followers, the app has unexpectedly claimed the top spot on the U.S. Apple Store rankings.
The coming days will prove crucial as Trump's team works to craft a deal that threads the needle between U.S. national security requirements and ByteDance's desire to maintain control. With multiple bidders emerging, including Perplexity AI's $50 billion merger proposal and Frank McCourt's competing offer, the future of America's digital entertainment landscape hangs in the balance.
