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President Donald Trump has announced an extension on the deadline for ByteDance, the parent company of TikTok, to divest its U.S. operations. This extension, confirmed via Trump’s social media platform Truth Social, highlights that the sale requires additional time to secure the necessary approvals. The new deadline shifts the timeline to mid-June, granting TikTok an additional 75 days to negotiate a deal.
In his statement, Trump indicated that the aim is to continue engaging in constructive discussions with China, suggesting that there are tensions concerning the U.S. tariffs which he describes as essential for fair trade. “We hope to continue working in Good Faith with China,” he remarked, recognizing the challenges posed by the reciprocal tariff policies in place.
ByteDance has communicated to CNBC that discussions are ongoing with the U.S. government, but any agreement reached would still require approval from Chinese authorities. A spokesperson for ByteDance emphasized that “An agreement has not been executed. There are key matters to be resolved,” indicating that the path forward remains complex.
Originally, ByteDance was under pressure to complete a qualified divestiture by April 5, a requirement stemming from national security legislation implemented by former President Joe Biden in 2024. Initially, the deadline was set for January 19, but Trump’s executive order upon taking office extended this timeline further, leading to confusion and adjustments within the app’s operational status in the U.S.
In an unprecedented move, just before the national security law took effect, major platforms like Apple and Google took measures to remove the application from their stores, prompting a temporary shutdown of TikTok for American users. However, following Trump’s announcement of an executive order supporting the platform, it was quickly restored, showcasing the unique interplay between national governance and technology firms.
Various stakeholders have shown interest in TikTok’s U.S. assets. Reports indicate potential buyers such as Oracle and AppLovin, along with Amazon’s recent bid. Furthermore, a consortium comprising private equity firms including Andreessen Horowitz and Blackstone aims to acquire nearly half of TikTok’s U.S. operations, while current investors might retain a significant share in the new entity.
Notably, billionaire Frank McCourt has also expressed intentions to acquire TikTok’s U.S. division, with support from Reddit co-founder Alexis Ohanian. In addition, a startup known as Perplexity has proposed merging with TikTok’s U.S. operations, reflecting the competitive climate surrounding the acquisition discussions.
While negotiations progress, any finalized deal hinges on approval from the Chinese government, further complicating an already intricate transaction process.
Trump, reflecting on these developments, asserted the significance of tariffs as a critical instrument of economic strategy and national security. He reiterated the intention to avoid letting TikTok “go dark” while expressing optimism about reaching a resolution with both TikTok and Chinese authorities. His recent policy decisions also included imposing a substantial reciprocal tariff rate on China, now cumulatively reaching a staggering 54% when combined with existing tariffs.
As the deadline looms, Trump has hinted at the possibility of further extensions if necessary. Vice President JD Vance previously noted that there are optimistic expectations of a significant agreement by the April deadline that could address national security concerns while allowing for an independent U.S. TikTok operation.
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