Trump grants TikTok 75‑day reprieve to avoid US ban
Donald Trump decided to extend the deadline for ByteDance to sell TikTok's American assets by 75 days. Otherwise, the app faces a ban in the USA.
What do you need to know?
- Donald Trump extended the deadline for the sale of TikTok's American assets by 75 days, granting the Chinese company ByteDance more time to find a buyer outside of China.
- A ban on operations of TikTok in the USA was set to take effect in January if ByteDance did not sell its American assets.
- Discussions about TikTok's future involve a plan where investors outside of China will increase their stakes in ByteDance and take over the app's American operations.
Why did Trump extend the deadline?
U.S. President Donald Trump announced on Friday the decision to extend the deadline by 75 days for ByteDance to sell TikTok's American assets.
This decision stems from the need to refine the deal, which still requires necessary approvals.
Trump emphasized that his administration is in talks with four different groups regarding a potential deal, though he did not disclose their names. "We do not want TikTok to 'go dark,'" he added.
What are the plans for TikTok?
According to information obtained by Reuters, talks conducted by the White House focus on a plan in which the largest investors outside of China in ByteDance will increase their stakes and take over TikTok's American operations.
The plan also includes establishing a separate American entity for TikTok and reducing Chinese stakes to below 20%, as required by U.S. law.
The biggest obstacle to implementing this plan is the consent of the Chinese government, which has so far not publicly committed to allowing the sale.
In January, TikTok was temporarily unavailable in the USA due to the impending deadline for the law banning its operations if it remained owned by ByteDance. However, Trump postponed the enforcement of the law, allowing the platform’s operations to resume.
