TikTok’s US Deal Faces Up to a Month More of Negotiations
▼ Summary
– TikTok’s US operations sale may not finalize for at least another month, with a potential US-China agreement in 30-45 days and Oracle continuing as its cloud partner.
– Treasury Secretary Scott Bessent stated that the US and China have reached a “framework deal,” with President Trump expected to confirm it after TikTok’s divestment deadline expires.
– TikTok faces uncertainty due to US legislation requiring it to divest from Chinese parent ByteDance or risk a ban over national security concerns.
– The US and China have reportedly agreed on licensing TikTok’s algorithms and intellectual property, with potential for a separate US app version and investment firms gaining control.
– CNBC’s David Faber noted the deal may involve relatively small financial transactions and is not expected to lead to a public offering for the entity.
The timeline for finalizing TikTok’s US operations deal has been extended, with negotiations now expected to continue for up to an additional month. According to sources cited by CNBC’s David Faber, an agreement between the US and China could be reached within the next 30 to 45 days. Under the proposed arrangement, Oracle will continue serving as the app’s cloud partner, ensuring that US user data remains routed through American servers.
Earlier this week, Treasury Secretary Scott Bessent indicated that a “framework deal” had been reached, with President Donald Trump expected to confirm the agreement on Friday. This announcement would come two days after TikTok’s most recent divestment deadline expires. The president has already granted the company multiple extensions, and it remains uncertain whether further leniency will be offered as talks near completion.
TikTok’s operational status in the United States has been under intense scrutiny since the passage of the Protecting Americans from Foreign Adversary Controlled Applications Act. This legislation requires the platform to separate from its Chinese parent company, ByteDance, or risk being banned over national security concerns.
Recent reporting from The Information suggests that progress has been made regarding the licensing of TikTok’s algorithms and intellectual property. Earlier proposals included the possibility of a standalone US version of the app. A consortium of investment firms, which may include current ByteDance shareholders, is reportedly positioned to assume control of TikTok’s domestic operations.
During an appearance on CNBC’s Squawk on the Street, Faber commented that the financial scale of the transaction may be smaller than some anticipate. He noted, “I’m hearing it’s actually going to be relatively small in terms of the actual size of the checks that are written for the entity itself, and it will not be something that is going to go public at some point.”
(Source: The Verge)
