ByteDance has confirmed ongoing discussions with the US government regarding the future of TikTok in the United States. This announcement follows President Donald Trump’s decision to extend the deadline for the Chinese company to divest its American operations.
In a recent statement, ByteDance indicated that several crucial issues remain unresolved. Additionally, any agreement reached would require approval under Chinese law. The new deadline, announced by Trump, grants ByteDance an extra 75 days to negotiate a sale of TikTok’s US business to an American buyer and avoid a ban that was poised to take effect this weekend.
Trump stated on his Truth Social platform, “My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress. The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days.”
Previously, a law enacted by President Joe Biden mandated that ByteDance divest TikTok’s American unit by January 19. However, the company has resisted selling a profitable business, which has been valued anywhere from $20 billion (approximately Rs. 1,71,658 crore) to as much as $150 billion (around Rs. 1287,438 crore), depending on the considered terms and technology involved.
This marks the second time Trump has granted a reprieve in an effort to facilitate a deal that would allow TikTok to continue operating in the US. The latest extension extends beyond the limits of the divest-or-ban law, which allows a “one-time extension of not more than 90 days.”
To assist in securing a deal, Trump has enlisted several senior officials to help evaluate potential buyers. Vice President JD Vance and National Security Advisor Mike Waltz have been assigned to oversee this portfolio.
On Wednesday, Trump and other senior officials reviewed a proposal from a consortium of US investors, including Oracle Corp., Blackstone Inc., and venture capital firm Andreessen Horowitz, which has emerged as a leading candidate to acquire TikTok.
If the deal proceeds, new outside investors are expected to acquire a 50 percent stake in TikTok’s US operations through a unit spun off from ByteDance. Current US investors in ByteDance would retain approximately 30% ownership, which would reduce ByteDance’s stake to just below 20%, thereby satisfying US security law requirements.
According to sources familiar with the negotiations, under the proposed arrangement, Oracle would hold a minority stake in TikTok’s US operations and provide security assurances for user data. This plan would allow ByteDance to retain control of the app’s influential algorithm, potentially resolving one significant obstacle to gaining approval from both the company and Chinese authorities.
On Friday, Trump reiterated his desire for cooperation from China in negotiating the sale, implying that the US might consider offering tariff relief in exchange for Beijing’s approval.
“We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!),” Trump remarked. He emphasized the significance of tariffs as a critical economic tool linked to national security, stating a desire to work collaboratively with TikTok and China to finalize the deal.
However, critics have raised concerns that retaining the algorithm in Chinese hands could violate the divest-or-ban law and potentially grant China access to user data through a backdoor. Detractors argue that maintaining ByteDance’s control over the algorithm would not alleviate fears of TikTok being used for propaganda—a claim repeatedly denied by ByteDance and Chinese officials.
The current situation marks a shift for Trump, who during his first term sought to ban TikTok in 2020 over national security fears. However, leading up to the November election last year, he embraced the platform as a means to connect with younger voters, suggesting its role in his campaign strategy.
Back in 2020, Oracle was originally proposed as Trump’s choice to acquire TikTok in collaboration with Walmart Inc. However, that deal collapsed in the final months of his term amidst legal difficulties faced by ByteDance and the escalating Covid-19 pandemic.
Recently, Amazon.com Inc. has entered the competition, submitting a bid to the White House through a letter addressed to Vance and Commerce Secretary Howard Lutnick. Despite this move, the administration reportedly views Amazon’s offer less favorably compared to others, according to an anonymous source familiar with the ongoing process.
Other known proposals include offers from a group led by billionaire Frank McCourt and Reddit co-founder Alexis Ohanian; a bid from tech entrepreneur Jesse Tinsley alongside YouTube star MrBeast; a merger proposal from San Francisco-based Perplexity AI; and an offer from AppLovin Corp.
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