TikTok’s negotiations regarding the sale of its US operations may extend for another month. Sources indicate that an agreement between the US and China could be reached within the next 30 to 45 days, with Oracle continuing as TikTok’s cloud partner to manage US user data on American servers.
Treasury Secretary Scott Bessent recently informed reporters that a “framework deal” for TikTok has been established between the US and China. He mentioned that President Donald Trump is expected to confirm this deal, which would come just two days after TikTok’s current deadline for divestiture expires. TikTok has previously received three extensions from Trump to finalize arrangements, leaving the possibility of another extension uncertain.
The future of TikTok in the US has become increasingly unclear following the passage of the Protecting Americans from Foreign Adversary Controlled Applications Act. This legislation requires TikTok to divest from its Chinese parent company, ByteDance, or face a potential ban due to national security concerns.
Furthermore, a report from The Information states that an agreement on the licensing of TikTok’s algorithms and intellectual property rights has been reached between the US and China. Earlier reports suggested that TikTok might create a distinct version of its app for the US market. Additionally, it has been noted that a consortium of investment firms, including current ByteDance shareholders, may take over TikTok’s US operations.
One analyst remarked that the financial aspects of the deal might be relatively modest and that the transaction may not lead to TikTok becoming a publicly traded entity in the future.
Source: https://www.theverge.com/news/778789/tiktok-us-china-deal-investors-oracle