ByteDance's TikTok Faces Deadline in US Asset Sale Amid Negotiations with Non-Chinese Investors
19 hours ago
ByteDance, owner of TikTok, faces a Saturday deadline to sell US assets to avoid a ban under a 2024 law. Talks involve increasing non-Chinese investors' stakes to rescue the app.
WASHINGTON – Chinese technology company ByteDance faces a Saturday deadline imposed by President Donald Trump to sell US assets of TikTok to a non-Chinese buyer or face a ban that was supposed to take effect in January under a 2024 law.
A White House official said “if there is any news to be shared about the future of TikTok, President Trump will announce it at a time of his choosing.” On Thursday, Trump said his administration was “very close” to reaching a deal on TikTok, with multiple investors involved.
The White House-led talks on the future of TikTok, which is used by 170 million Americans, are coalescing around a plan for the biggest non-Chinese investors in parent company ByteDance to increase their stakes and acquire the short video app’s US operations, Reuters has reported.
The plan entails spinning off a US entity for TikTok and diluting Chinese ownership in the new business to below the 20 per cent threshold required by US law, rescuing the app from a looming US ban, sources have told Reuters.
Jeff Yass’ Susquehanna International Group and Bill Ford’s General Atlantic, both of which are represented on ByteDance’s board, are leading discussions with the White House, Reuters reported.
China now faces a 54 per cent tariff on goods imported into the US Trump has said he would be willing to reduce tariffs on China to get a deal done with ByteDance.
The biggest stumbling block to any deal for TikTok’s US business is Chinese government approval. Until now, Beijing has not made a public commitment to allow a sale.
TikTok did not immediately respond to a request for comment.
Trump has said his administration was in touch with four different groups about a prospective TikTok deal. He has not identified them. (Reuters)
