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U.S. President Likely to Extend TikTok Sale Deadline
SAN FRANCISCO: President Donald Trump is expected to prolong the deadline for TikTok to secure a non-Chinese buyer or potentially face a ban in the United States, which is set for Thursday.
This would mark the third occasion Trump has deferred implementing a federal regulation mandating the app’s sale or ban, initially meant to take effect just before his inauguration in January.
In a recent interview with NBC News in early May, Trump expressed a fondness for TikTok, stating, "I have a little warm spot in my heart for TikTok," and indicated he might grant an extension if necessary.
According to Trump, prospective buyers are prepared to offer substantial sums to purchase the U.S. operations of TikTok’s parent company, ByteDance.
Despite the looming deadline, Trump has consistently minimized concerns regarding TikTok’s future, expressing confidence that a buyer will emerge for its U.S. business. Independent analyst Rob Enderle suggested that the president is "not particularly motivated to act against TikTok," adding, "Unless the platform crosses him, it will likely continue to thrive."
Initially favoring a ban or divestment, Trump reconsidered and pledged to support the platform after realizing it could help him attract younger voters in the upcoming election. Enderle remarked, "Trump hasn’t fulfilled many of his campaign pledges, but this is one area where he could actually deliver."
A Symbol of the U.S.-China Tech Rivalry
Aiming to address national security apprehensions and the belief that the Chinese government controls TikTok, the ban was put into effect on January 19, just a day before Trump’s inauguration, despite ByteDance’s failure to seek a buyer at that time.
Shweta Singh, an assistant professor of information systems at Warwick Business School in the United Kingdom, noted that "TikTok has become a symbol of the tech rivalry between the U.S. and China, representing a flashpoint in the new Cold War over digital influence." She further stated, "This underscores the intersection of national security, economic policy, and digital governance."
Upon taking office, the Republican president announced a 75-day delay on the ban, followed by a second extension, pushing the deadline to June 19. As of Monday, no acquisition plans for TikTok have been reported.
Trade Tariffs and Negotiations
In April, Trump mentioned that an agreement regarding the sale of TikTok might have been reached if not for ongoing tariff disputes between Washington and Beijing.
ByteDance confirmed that discussions with the U.S. government are underway, emphasizing that key issues remain to be resolved, with any deal subject to Chinese legal approval.
Possible solutions being considered include allowing current U.S. investors in ByteDance to roll over their stakes into a new independent TikTok entity. Additional American investors, such as Oracle and the private equity firm Blackstone, could also be involved to lessen ByteDance’s share in the new TikTok.
Much of TikTok’s U.S. infrastructure is already hosted on Oracle servers, and Oracle’s chairman, Larry Ellison, is a known Trump supporter.
There remains uncertainty, particularly regarding the fate of TikTok’s valuable algorithm. Forrester Principal Analyst Kelsey Chickering remarked, "TikTok without its algorithm is like Harry Potter without his wand—it’s simply not as powerful."
Despite the ongoing negotiations, TikTok continues its regular operations. Recently, the platform unveiled a new "Symphony" suite of generative AI tools that allow advertisers to transform words or images into video snippets for TikTok.
Andy Yang, TikTok’s global head of creative and brand products, stated, "With TikTok Symphony, we’re empowering a global community of marketers, brands, and creators to share stories that resonate, expand, and make an impact on TikTok."
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