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Investing.com - TikTok began restoring US services on Sunday just hours after going dark on account of a Supreme Court-backed ban, as President-elect Donald Trump promised to "save" the short-form video platform when he returns to power.
Users were initially unable to access TikTok on Sunday, as the popular app complied with a Supreme Court ruling that upheld a ban approved by Congress. Lawmakers had voted to bar TikTok from operating in the US unless it got rid of its current Chinese ownership, with some officials pointing to concerns that the app could be used by China's government to track or propagandize its 170 million American users.
Speaking at a rally on Sunday, Trump said "we have to save" TikTok, adding "frankly, we have no choice". Prior to the event, TikTok issued a message saying it was "back in the US", and thanked Trump in particular. However, the app was unavailable for download on US app stores late on Sunday, Reuters reported.
Trump promised to issue an executive order when he takes office on Monday that will allow TikTok more time to find a US buyer, keeping the app online in the interim. Trump called for a joint venture that would leave at least 50% of TikTok’s ownership in US hands.
Recent reports said Tesla (NASDAQ:TSLA) CEO and Trump confidant Elon Musk could be a potential suitor, while Morgan Stanley (NYSE:MS) speculated that the app would also be a strategic fit for e-commerce titan Amazon (NASDAQ:AMZN). Other reports have suggested that an entrepreneur group led by Jesse Tinsley and potentially including social media star Mr. Beast was submitting an offer.
Analysts were also largely skeptical of whether TikTok would be banned, given that public opinion was largely against such a move.
"We believe behind the scenes there is significant activity from both financial and strategic tech buyers for the golden TikTok asset," analysts at Wedbush said in a note to clients.
"In this game of poker, TikTok went from its back against the wall to a massive position of strength with Trump behind the platform and heavily against the ban,"
TikTok’s short video format was a major disruptor in the social media space, causing competitors such as Instagram and YouTube to offer similar services on their platforms.
(Ambar Warrick and Reuters contributed reporting.)