Popular video-sharing app TikTok found new lease of life (at least temporarily) as US President Donald Trump opted to delay a ban on the platform. Americans had been slated to lose access to cite by Saturday if parent company ByteDance does not sell its US assets to a non-Chinese buyer. Trump has repeatedly insisted that he is ‘very close’ to a deal with the involvement of multiple investors. US authorities have citied security concerns as the reason for banning TikTok — used by approximately 170 million people in the country.
According to a Reuters report, the White House-led talks are coalescing around a plan for the biggest non-Chinese investors of ByteDance to increase their stakes and acquire the US operations of TikTok. Sources in the know told the publication that the plan also entailed spinning off a U.S. entity for TikTok and diluting Chinese ownership until it fell below the 20% threshold required by US law.
The biggest stumbling block to any deal is Chinese government approval. But until now the Xi Jinping-led administration has not made any public comments that indicate its acquiescence to a sale.
Trump also indicated his willingness on Thursday to consider a deal for TikTok that would see China approve the sale in exchange for relief from the recently-imposed tariffs. The POTUS had announced sweeping reciprocal taxes against nearly all imports from over 180 nations on Wednesday — including a 34% levy against China.
The latter however ignored this offer in favour of imposing its own 34% retaliatory tariff against all imports from the United States starting April 10. It was not immediately clear whether the fresh strain on US-China ties would have any impact on the sale.
“China played it wrong, they panicked – The one thing they cannot afford to do!” Trump wrote on Truth Social soon after the announcement.
Who is bidding for Tiktok?
Trump has said his administration was in touch with four different groups about a prospective TikTok deal without identifying them. He has also indicated a desire for the US government to hold a 50% stake in any joint venture. Several companies and individuals made overtures earlier this week — including Amazon which registered its bid just before the deadline.
Zoop, a startup created by OnlyFans founder Tim Stokely, partnered with the cryptocurrency foundation Hbar Foundation to bid for the app. Amazon, Perplexity AI, marketing platform AppLovin, U.S. billionaire Frank McCourt and influencer Jimmy Donaldson, better known as the YouTube star Mr. Beast, have also entered bids. Private equity firm Blackstone is discussing joining ByteDance’s non-Chinese shareholders, led by Susquehanna International Group and General Atlantic, in bidding for the business. Venture capital firm Andreessen Horowitz is in talks to buy out TikTok’s Chinese investors, as part of a bid led by tech company Oracle.
According to an update shared by ABC News reporter Selina Wang on X, Walmart is also considering joining a group of investors to buy the short video app.
Will it be banned on April 5?
The app was scheduled for a ban on Saturday — unless the Trump administration announced a deal at the eleventh hour and averted a shutdown. However the POTUS has now delayed the ban for an additional 75 days after deciding to extend the deadline for divestment. According to a Bloomberg report, he has said that Beijing-based ByteDance will be given an additional 75 days to agree to a deal that would sell TikTok’s US operations to an American buyer.