Despite ongoing legal challenges, TikTok content creators refuse to prepare for a potential U.S. ban on the app that helped them garner millions of followers in four years, the Wall Street Journal reports.
The ban, which will take effect on January 19, stems from a law requiring TikTok to be sold to a non-Chinese owner.
TikTok and its parent company, ByteDance lawyers, have appealed to the Supreme Court to halt the ban pending their appeal to a lower-court ruling.
A lot seems to be brewing in the social media landscape as President-elect Donald Trump prepares to take charge in January. Trump has fueled hope among TikTok supporters by urging the Supreme Court to delay the law's implementation.
TikTok has become a critical platform for creators and advertisers, accounting for ~4% of the U.S. digital ad market, the WSJ cites eMarketer. TikTok, boasting 170 million U.S. users, estimated that creators could lose $300 million in monthly earnings upon a ban.
In 2020, then-President Donald Trump called the app a "national security" risk since it is owned by a Beijing-based parent company. ByteDance Ltd., which launched TikTok in 2018 after acquiring Shanghai-based video app Musical.ly for $1 billion, could gather data on Americans on behalf of Chinese authorities, he had said.
However, a federal judge has halted the Trump Administration's ban on TikTok. Then, Trump forced a sale of TikTok to U.S. companies, with Bytedance still holding a majority stake.
Meanwhile, advertisers have contingency plans to redirect ad spending to platforms such as Meta Platforms Inc
Reportedly, ByteDance plans to spend $7 billion on Nvidia Corp
Recently, Amazon.Com Inc
In July, Needham's Laura Martin valued TikTok higher than Reels and Shorts backed by its revenue, active users and engagement measures.
