US President said his administration is close to making a deal to find a buyer for TikTok and prevent it from shutting down. The deal would involve several investors, but he has not shared many details.
President Donald Trump extended the deadline for TikTok to find a non-Chinese buyer or face being banned in the U.S. He gave TikTok an extra 75 days to work out a solution.
Trump shared on Truth Social, saying, ‘My Administration has been working very hard on a deal to save TikTok, and we have made tremendous progress.’ He added, ‘A transaction 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.’
TikTok, which has more than 170 million American users, is at risk because of a U.S. law passed last year. This law says TikTok must separate from its Chinese owner, ByteDance, or be shut down in the U.S.
Trump has said his administration is close to making a deal to find a buyer for TikTok and prevent its shutdown, involving multiple investors. However, he has given few details.
ByteDance has confirmed it is in talks with the U.S. government to find a solution but warned that some “key matters” still need to be solved. The company also stated, “An agreement has not been executed” and whatever is decided will be “subject to approval under Chinese law.”
The TikTok Deadline and Possible Deal
TikTok has been under pressure since January, when a law was passed that would force ByteDance to sell TikTok or shut it down. At that time, ByteDance had not started looking for a buyer, and TikTok was temporarily removed from U.S. app stores.
However, Trump quickly announced a 75-day delay to allow more time to find a buyer. TikTok returned to app stores in February. The new deadline now extends to June 19.
Trump has repeatedly said he is confident a deal will be found. He also mentioned that TikTok could become part of a larger agreement with China to ease the tariffs imposed on Beijing.
Who Will Buy TikTok?
Reports suggest that U.S. companies like Oracle and Walmart may be part of the deal to buy TikTok. Oracle already handles much of TikTok’s U.S. data, and the company’s chairman, Larry Ellison, is a close Trump ally.
Walmart and Oracle were both rumored to be interested in purchasing TikTok during Trump’s first term. Recently, Amazon also expressed interest, which could change the dynamics of the deal.
What About TikTok’s Algorithm?
A major concern is what will happen to TikTok’s algorithm, which is a key part of its success. Some experts believe that without its algorithm, TikTok wouldn’t be as powerful. Reports suggest that ByteDance could still license the algorithm to the new company, but this could go against the spirit of the law. The law is partly based on fears that China could use TikTok’s algorithm to influence U.S. interests.
