Trump grants TikTok a temporary respite from US actions
In a surprising turn of events, President Donald Trump has granted TikTok another reprieve in the US, allowing the popular short-video app to remain available until December 16. This extension comes after an initial 75-day grace period, which was not covered by the document, and the law only provided for a one-time extension of 90 days in case of successful sales negotiations.
The current status of TikTok's US business acquisition is that a deal is near completion involving a US investor consortium led by Oracle, Silver Lake, and Andreessen Horowitz, including associates of former President Trump. This consortium would own more than 80% of the new US-based company, with the remainder held by the Chinese parent ByteDance. The deal envisions a new TikTok app and US-based servers (hosted by Oracle in Texas) to address national security concerns, with a board dominated by US government-selected members. Final negotiations are ongoing between US and Chinese officials, with an agreement deadline around September 17, 2025.
Bytedance, and thus also its subsidiary TikTok, are considered Chinese companies in the US. Bytedance is headquartered in Beijing and is subject to many Chinese regulations, despite being 60 percent owned by international investors and based on the Cayman Islands. Founder Zhang Yiming and his team hold only a 20 percent stake but control the company due to shares with more voting rights, according to media reports.
The US government has proposed a framework for a TikTok deal with China, where the current owner Bytedance is based. The law stipulates that neither the Chinese government nor Bytedance may have control over the algorithm used by TikTok, a practice that critics view as a potential risk for US government influence on public opinion. TikTok will continue to use the algorithm developed in China to determine which videos are shown to users in the US.
Trump has emphasized that TikTok has helped him in the election campaign, especially in mobilizing young voters. However, the extension is not based on the law, as Trump has repeatedly extended the grace period without legal basis. The US Treasury Secretary Steven Mnuchin stated that Trump and Chinese President Xi Jinping would finalize the agreement during a conversation on Friday.
The business news channel CNBC reported that it could take another 30 to 45 days to finalize a sales deal for TikTok. China has already introduced a rule during Trump's first term requiring government approval for the sale of software algorithms abroad. Oracle, backed by Trump supporter Larry Ellison, will retain its role as TikTok's technical service provider in the US.
The extension of TikTok's availability in the US until December 16 marks a significant development in the ongoing saga of the app's future in the country. As negotiations continue, the fate of TikTok remains uncertain, with national security concerns and political implications at play.
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