President Donald Trump announced in an interview on Fox News that a buyer has been found for TikTok and that more details will be revealed in about two weeks.
He mentioned that the potential deal might require approval from China, specifically from President Xi Jinping.
The big picture: Trump suggested the buyer is a group of wealthy individuals but did not disclose further information. The selling off of TikTok was mandated by a law that went into effect five months ago, but Trump’s actions have delayed enforcement of the ban.
- The deadline for ByteDance, TikTok’s China-based parent company, to transfer control of TikTok’s US operations has been extended to September 17.
- The Chinese government has expressed reservations about approving a sale that includes TikTok’s algorithm, a crucial component of the app. A previous deal to transfer majority control of TikTok’s US operations to American ownership fell through due to additional tariffs imposed by Trump on China.
- ByteDance has indicated that any agreement would need to comply with Chinese law, adding another layer of complexity to the potential sale of TikTok. Former President Joe Biden signed the initial sale-or-ban law, which was supposed to go into effect on January 19.
- Despite the law taking effect, Trump’s orders have delayed the ban’s enforcement multiple times in an effort to secure a deal to keep TikTok operational in the US. This has led to uncertainty surrounding the future ownership of TikTok and its operations in the country.
