President Donald Trump has once again extended the deadline for ByteDance to divest TikTok’s U.S. business, granting additional time until December 16 for a resolution to be finalized. This marks the fourth extension of the divestiture deadline, which stems from national security concerns over the Chinese-owned app’s U.S. operations. Without the extension, a national security law would have effectively banned TikTok in the U.S., preventing app stores and internet service providers from supporting the platform.
The new timeline follows the announcement of a framework deal that involves transferring the majority ownership of TikTok’s U.S. business to an investor consortium. The group is expected to include Oracle, Silver Lake, and Andreessen Horowitz, among others. Under the proposed arrangement, the consortium would hold around 80% ownership, while Oracle would continue to provide its cloud computing services to TikTok. Reports suggest that current U.S. TikTok users may need to transition to a new app once the deal is finalized.
Treasury Secretary Scott Bessent revealed earlier this week that the commercial terms of the agreement had essentially been settled months ago. However, China had delayed progress in response to Trump’s tariffs and trade policies. According to Bessent, the deal includes agreements on future restrictions designed to address national security concerns, though he emphasized that these measures would not disrupt TikTok’s core operations for American users.
Trump is expected to discuss the details of the arrangement with Chinese President Xi Jinping on Friday. Negotiations between the two nations have played a significant role in shaping the terms, with U.S. officials highlighting that TikTok’s U.S. operations must be safeguarded from potential foreign influence. The finalized deal is anticipated to close within the next 30 to 45 days, pending government approval and coordination between the involved parties.
While the framework appears to move TikTok closer to a resolution, uncertainty remains. A senior White House official cautioned that any details about the agreement should be considered speculative until formally announced by the administration. Still, the extension signals a temporary reprieve for TikTok in the U.S. as the app continues to navigate regulatory pressures and shifting international relations.
The outcome of this process will determine not only TikTok’s future in the American market but also broader dynamics between Washington and Beijing in the technology and data security arena.
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