Trump grants ByteDance additional time to seal TikTok deal
Donald Trump has opted to extend the deadline for ByteDance to sell TikTok's American assets by 75 days. If the sale does not occur, the app faces a ban in the USA.
What do you need to know?
- Donald Trump extended the deadline for selling TikTok's American assets by 75 days, providing the Chinese company ByteDance with more time to secure a buyer outside of China.
- A ban on TikTok operations in the USA was scheduled to take effect in January if ByteDance didn't sell its American assets.
- Discussions about TikTok's future involve a proposal where external investors will increase their shares in ByteDance to take over the app's American operations.
Why did Trump extend the deadline?
U.S. President Donald Trump announced on Friday his decision to extend the deadline for the Chinese company ByteDance to sell TikTok's American assets by 75 days.
This decision arises from the need to refine the deal, which still requires necessary approvals.
Trump emphasised that his administration is negotiating with four different groups regarding a potential deal, though he did not reveal their names. He added that they don't want TikTok to disappear.
What are the plans for TikTok?
According to information obtained by Reuters, discussions led by the White House focus on a plan where the largest investors outside of China in ByteDance will increase their stakes and assume control of TikTok's American operations.
The proposal also includes establishing a separate American entity for TikTok and reducing Chinese stakes to below 20%, as mandated by U.S. law.
The primary hurdle in enacting this plan is gaining consent from the Chinese government, which has not yet publicly committed to allowing the sale.
In January, TikTok was temporarily unavailable in the USA due to the impending deadline for legislation banning its operations if it remained owned by ByteDance. However, Trump delayed the law's enforcement, enabling the platform to resume operations.
