TikTok's 90-Day Reprieve: A Lifeline or a Last Dance?

In a surprising reversal, President-elect Donald Trump has indicated that he is "most likely" to grant TikTok a 90-day extension, potentially averting a U.S. ban on the popular video-sharing platform. This development comes as a relief to TikTok's 170 million American users, who have been anxiously awaiting a resolution to the app's uncertain future.

The extension, if granted, would provide more time for potential buyers to emerge and negotiate a deal with TikTok's parent company, ByteDance. This could include American companies or even foreign companies with U.S. operations. For instance, Elon Musk has been mentioned as a potential buyer, although Chinese officials have denied this (CNN, January 19, 2025).



A 90-day extension could also allow TikTok to continue generating advertising revenue in the U.S. market. In 2024, TikTok's advertising revenue was estimated to reach $11.6 billion globally. Maintaining its U.S. presence would enable TikTok to continue capitalizing on this growth (eMarketer, 2024).

However, the extension could also prompt TikTok's competitors to step up their efforts to capture its user base. Platforms like Instagram Reels, YouTube Shorts, and Snapchat could intensify their marketing campaigns, enhance their features, and form partnerships with content creators and brands to lure TikTok users to their platforms (The Verge, January 18, 2025).



Despite the potential challenges, a 90-day extension could boost investor confidence in TikTok and ByteDance. This could lead to increased investment and support for the company as it navigates the potential sale or extension (Bloomberg, January 18, 2025).

In conclusion, Trump's 90-day extension for TikTok could provide a much-needed lifeline for the popular app, allowing it to continue operating in the U.S. market and potentially attracting new buyers. However, the extension could also intensify competition from rival platforms and prompt them to step up their efforts to capture TikTok's user base. Ultimately, the outcome will depend on the market's response to the extension and the potential buyers that emerge during this period.