Business Social Media

ByteDance gets another extension in the US for TikTok sale

ByteDance - Appy Pie

ByteDance’s deadline to sell the video-sharing platform TikTok’s business in the US has once again been extended by the Trump administration. The Committee on Foreign Investment in the United States (CFIUS) has given Beijing-based ByteDance time until December 4th to either sell or spin out its US business.

CFIUS had granted the extension to allow time to review a revised submission that it recently received from ByteDance.

The US government administration had initially granted the Beijing-based company a 15-day extension of the order issued in August. President Donald Trump had directed ByteDance to divest the app within 90 days on August 14.

The new deadline given to TikTok is December 4. ByteDance has been in talks with Walmart Inc and Oracle Corp for a long time to finalize a deal to shift TikTok’s US assets into a new entity.

In September, the US Commerce Department issued an order to block any new downloads of TikTok in the country. The president then said he had approved a deal with Oracle and Walmart that called for creating a new US-based entity, TikTok Global. TikTok that time had given a confirmation of entering into a deal with Oracle and Walmart.

TikTok had said, “We are very happy that today we have confirmed a proposal that settles questions around TikTok’s future in the US. Our plan is extensive and based on the older CFIUS resolutions, including working with Oracle. The company will be our cloud and technology provider responsible for fully securing our users’ data. We are serious about protecting our users globally and providing them better security. Both the companies Oracle and Walmart will take part in a TikTok Global pre-IPO financing round. In the financing round both the companies will take up to a 20 percent cumulative stake in TikTok. We will expand the US office as TikTok Global’s headquarters and we will try our level best to bring about new 25,000 jobs across the country.”

However, the deal has not been finalized and it needs to yet to receive final approval.

President Trump had said in August that TikTok and its parent company were a threat to the US national security, and issued the initial order requiring TikTok to sell its US business. Trump’s order if passed will block all US transactions with ByteDance.

There was no information about what Bytedance had included in the revised submission. If the new proposal submitted by the Beijing-based Bytedance gets rejected by the Trump administration, TikTok could get banned in the United States.

Bytedance is also locked in a legal battle with the Trump administration to avert the TikTok ban in the United States.

TikTok did not immediately reply to a request from the media for a comment.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *