ByteDance has acknowledged that it is in talks with the US government regarding the future of TikTok in the country. This announcement followed President Donald Trump’s recent decision to extend the deadline for the Chinese company to divest its American operations.
In a statement released on Friday, the company noted that several key issues still need resolution and emphasized the necessity of approvals in accordance with Chinese law. With the extension granted by Trump, ByteDance now has an additional 75 days to negotiate a sale of TikTok’s US arm to an American buyer and avert a ban that was set to be implemented imminently.
Trump stated in a post 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.”
Last year, legislation signed by President Joe Biden mandated that ByteDance divest TikTok’s US operations by January 19, a condition with which the company has expressed reluctance to comply due to the app’s high valuation. Estimates for TikTok’s worth range from $20 billion (approximately Rs. 1,71,658 crore) to upward of $150 billion (around Rs. 1,287,438 crore), contingent on the specific terms and technology involved.
Trump’s latest order represents the second extension he has provided to facilitate negotiations aimed at keeping the app operational in the US. However, this latest deadline extends beyond the limits set by the divest-or-ban law, which grants the president the authority to issue a “one-time extension of not more than 90 days.”
To facilitate the negotiations, Trump has appointed several senior administration officials to assist in identifying potential buyers, with Vice President JD Vance and National Security Advisor Mike Waltz leading the effort.
Recently, Trump and key officials reviewed a proposal from a group of US investors that includes Oracle Corp., Blackstone Inc., and venture capital firm Andreessen Horowitz, who are positioned as likely candidates to acquire TikTok, as reported by two sources familiar with the discussions.
This potential deal would see outside investors take a 50 percent stake in TikTok’s US business, which would be established as a separate entity from ByteDance. ByteDance’s existing US investors would maintain approximately 30 percent ownership, reducing ByteDance’s overall stake to slightly below 20 percent to comply with US security legislation.
Furthermore, the proposal suggests that Oracle would acquire a minority interest in TikTok’s US operations while ensuring data security for users. Under this framework, the algorithm that powers TikTok would remain with ByteDance, potentially mitigating a significant objection to the agreement from both the company and Chinese authorities.
Trump reiterated his intent for China to assist in finalizing the sale, hinting at the possibility of tariff relief from the US in exchange for China’s consent. He noted, “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.!). This proves that Tariffs are the most powerful Economic tool, and very important to our National Security! We do not want TikTok to ‘go dark.’ We look forward to working with TikTok and China to close the Deal.”
Some critics, however, argue that allowing ByteDance to retain control of the algorithm undermines compliance with the divest-or-ban law and raises concerns that it could enable China to access user data through a potential backdoor. These apprehensions highlight ongoing fears related to the app’s capacity to disseminate propaganda—a claim that ByteDance and Chinese officials have consistently denied.
This pivot in Trump’s stance towards TikTok contrasts sharply with his administration’s earlier efforts to ban the app in 2020 due to national security fears. In his recent campaign for the presidency, he recognized the app as a valuable tool for engaging younger voters, claiming it played a crucial role in his electoral success.
In 2020, Oracle was initially considered Trump’s preferred choice for acquiring TikTok from ByteDance, in a consortium that included Walmart Inc. However, that arrangement fell through amid legal disputes from ByteDance and the impact of the COVID-19 pandemic.
This week, Amazon.com Inc. also expressed interest by submitting a proposal to the White House, directed to Vance and Commerce Secretary Howard Lutnick. Nonetheless, insiders indicated that this offer was not being taken as seriously by the administration.
Other noted bidders include a consortium led by billionaire Frank McCourt and Reddit co-founder Alexis Ohanian, as well as tech entrepreneur Jesse Tinsley and YouTube personality MrBeast. Additional offers have come from San Francisco-based Perplexity AI and AppLovin Corp.
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