President-elect Donald Trump's announcement of a plan to delay the ban on TikTok has sparked significant attention, as his joint venture proposal could allow the app to potentially resume operations in the United States without fear of having to go permanently dark.

Trump's plan involves a 50% U.S. ownership in a joint venture, aiming to save the popular platform from prohibition in America, as the Washington Examiner reports.

The incoming president shared his proposal on his platform, Truth Social, urging companies not to "let TikTok stay dark" and indicating his intention to issue an executive order extending the ban deadline once he takes office.

The proposed joint venture involves a 50% U.S. ownership stake, with the remaining ownership to be distributed between the app's current or potential new owners, as outlined by Trump.

TikTok Operations Halted in the U.S.

On Saturday night, TikTok ceased its operations due to the existing ban, affecting not only TikTok but also other apps owned by ByteDance.

Users of the platform received a message informing them that the app was unavailable due to the enforced ban. The message was somewhat optimistic, noting Trump's indication to work towards a solution once he officially assumes office, and the next morning, the app was made available once again based on assurances from the incoming president.

Trump's Proposal for U.S. Ownership

The announcement from Trump indicated his belief that with U.S. approval, TikTok's value could grow tremendously. He expressed this by stating that without the approval, TikTok has no place in the U.S. market, but with joint ownership, its value could skyrocket to potentially hundreds of billions, if not trillions, of dollars.

His proposition suggests a combined ownership model, where either the current owners of TikTok or potential new buyers collaborate to ensure that the U.S. holds a substantial share.

This collaborative framework, as Trump describes, would be initiated between the U.S. and the chosen purchaser.

Examining Past U.S. Oversight Plans

In 2022, TikTok had introduced a plan known as "Project Texas," which included measures for U.S. oversight. However, this proposal was rejected by the current administration, leading to the present standstill.

Trump has indicated a possibility of revisiting or revising the components of "Project Texas" to address ongoing concerns about TikTok under his potential new blueprint.

An executive order has been suggested as one of the options available to Trump to postpone the ban. This strategic maneuver could buy time for an effective restructuring or sale that aligns with U.S. ownership requirements.

Users Await a Solution

On Saturday night, TikTok users in the U.S. were advised to remain patient as the situation unfolded and efforts were made to reinstate the app, which eventually occurred.

The upcoming steps in seeking a solution will involve a delicate balance of negotiations among stakeholders, plans to assure national security, and a sustainable business model that retains TikTok's viability in the U.S. market.

Future Developments and Strategic Concerns

Trump's move to extend the deadline and recalibrate the ownership of TikTok comes amid broader discussions and debates over privacy and security concerns associated with foreign-owned apps operating within the United States. The proposed joint venture positions the U.S. as not only a stakeholder but also a gatekeeper to app approvals based on national and economic interests.

TikTok's response to this proposal remains equally critical, as the app's leadership navigates its relationship with U.S. authorities while maintaining its global user base. The confluence of political, economic, and technological concerns makes this a complex scenario with wide-reaching implications.

The Bottom Line

The joint venture proposal introduced by Trump represents a unique approach to reconciling the app's operational challenges in the U.S. while targeting significant U.S. involvement in its ownership structure.

As the situation progresses, the focus remains on whether these efforts will enable TikTok to resume operations and thrive in the U.S. against a backdrop of regulatory scrutiny and evolving international relations.