Trump Extends TikTok Deadline Amid Ongoing Efforts for U.S. Purchase
In a significant development on Friday, President Donald Trump announced an extension of 75 days for TikTok to secure a buyer outside of China, staving off a potential shutdown in the United States. This extension comes just hours before the original deadline was set to expire.
“My administration has been diligently working towards a deal to save TikTok, and we have made significant progress,” Trump shared on Truth Social. “This Executive Order will ensure TikTok remains operational for an additional 75 days, as a transaction will require further work to secure all necessary approvals.”
The popular video-sharing platform, boasting over 170 million users in the U.S., faces an existential threat from a law overwhelmingly passed the previous year, mandating that TikTok separate from its Chinese owner, ByteDance, or risk being banned in the country. Concerns around national security and the belief that TikTok is under the influence of the Chinese government have fueled these legislative actions.
On January 19, just a day before Trump was inaugurated, the initial ban took effect, leading TikTok to momentarily suspend its operations and disappear from app stores, much to the disappointment of its extensive user base. However, Trump quickly initiated a 75-day grace period, enabling TikTok to resume service and reappear in app stores by February. This latest extension propels the deadline to June 19.
Despite the looming uncertainty, Trump remains optimistic about finalizing a deal to facilitate the app’s purchase by multiple investors, offering few specifics. He highlighted that the agreement would necessitate cooperation from the Chinese government, indicating potential for a broader trade deal that could address tariffs imposed on Beijing during his presidency.
“We do not want TikTok to ‘go dark.’ We are eager to collaborate with TikTok and Chinese authorities to finalize this transaction,” Trump stated.
Reports indicate that the plan being considered would allow existing U.S. investors in ByteDance to retain stakes in an independently structured global TikTok company. Furthermore, additional U.S. investors, such as Oracle and Blackstone, are expected to join in the effort to reduce ByteDance’s ownership share. Notably, much of TikTok’s U.S. operations are currently managed on Oracle’s servers, with the company’s chairman, Larry Ellison, being a long-time ally of Trump.
Walmart is also reported to be involved in this potential acquisition, having previously expressed interest in TikTok during earlier attempts to divest from its Chinese ownership.
Despite having favored a ban or divestment in his previous term, Trump has recently defended TikTok, highlighting its appeal among younger voters in the recent election.
Uncertain Future Over TikTok’s Algorithm
While the buyout discussions are underway, uncertainties persist, particularly regarding TikTok’s proprietary algorithm. This key feature has been deemed essential to the app’s success, with analysts equating TikTok without its algorithm to “Harry Potter without his wand.”
The New York Times speculated that the new entity might enter into a licensing agreement with ByteDance for the algorithm, though this approach could contradict the underlying rationale of the law designed to limit Chinese influence.
Reports also surface of Amazon making a last-minute bid for TikTok, alongside various other proposals, including a project spearheaded by entrepreneur Frank McCourt’s Project Liberty named “The People’s Bid for TikTok.” Additionally, the AI startup Perplexity and a joint venture involving popular YouTuber MrBeast have expressed interest in acquiring the app, along with a proposal from the adult content platform OnlyFans.
As negotiations continue, the outcome remains uncertain, with many stakeholders involved in the potential future of TikTok in the U.S. market.
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