A deal to separate TikTok’s U.S. assets was delayed after China signaled it would not approve the arrangement due to President Donald Trump’s recent tariff announcement, according to two sources familiar with the situation.
Trump extended the deadline by 75 days on Friday for ByteDance to sell TikTok’s U.S. assets to a non-Chinese buyer or face a ban, which was initially set to take effect in January under a 2024 law. One of the sources mentioned that the deal’s structure was largely finalized by Wednesday, and it would have created a new company based in the U.S. to oversee TikTok’s U.S. operations, with U.S. investors owning a majority stake, while ByteDance would retain less than 20%.
The deal had received approval from ByteDance, U.S. investors, new investors, and the U.S. government, the source stated.
On Saturday, ByteDance confirmed that discussions were ongoing but no agreement had been reached yet, with many key issues still unresolved. The company shared this update via WeChat, a Chinese social media platform.
Meanwhile, following Trump’s tariff hike, China is now facing a 54% tariff on goods imported to the U.S., which led to retaliatory measures by China. Trump has suggested he might reduce tariffs in exchange for a deal with ByteDance over TikTok, which has 170 million U.S. users. He mentioned that his administration was in talks with four different groups regarding a possible deal, but he did not identify them.
A major hurdle in finalizing the deal is the approval from the Chinese government, which has not publicly expressed support for the sale. Trump’s statements hinted at continued Chinese opposition.
Trump expressed his desire to reach a deal, stating on Friday that he looked forward to collaborating with TikTok and China to finalize the sale, emphasizing that the app should not “go dark.”
The U.S. Congress passed the law last year, citing concerns that the Chinese government could exploit TikTok for surveillance or covert influence operations. The law, which required ByteDance to divest TikTok’s U.S. assets by January 19, 2024, was signed by then-President Joe Biden. Despite this, Trump did not enforce the law after taking office on January 20.
In January, the Justice Department informed Apple and Google that it would not enforce the law, allowing TikTok to remain available for download. Trump’s new order sets a mid-June deadline for a potential deal.
The talks are reportedly focused on a plan where the largest non-Chinese investors in ByteDance would increase their stakes and acquire TikTok’s U.S. operations, potentially saving the app from a U.S. ban. Jeff Yass’ Susquehanna International Group and Bill Ford’s General Atlantic, both of which have representation on ByteDance’s board, are leading the discussions with the White House.
Walmart has denied an ABC News report that it was considering joining a group of investors for the TikTok deal.
