As you’ll recall, President Donald Trump has personally granted TikTok three extensions for its sale. The popular social media platform has been given an additional 75 days to find an appropriate American buyer. The original deadline was to have lapsed on April 5. Against this backdrop, the pressure for TikTok to find a path to U.S. ownership has reached a fever pitch to avert a possible complete TikTok ban in the United States.
The executive order makes the extension official. That’s a long time and provides TikTok ample room to maneuver through the uncertain details of the sale process. ByteDance, a private Chinese company, is currently the owner of TikTok. Consequently, U.S. government concern is growing since it considers TikTok’s parent ByteDance a “foreign adversary.” In order for TikTok to keep doing business in the US, it needs to be American owned—that is the crux of the requirement.
The Stakes for TikTok
As you’ll see, the stakes of not selling to a U.S. company are high. If TikTok doesn’t find an American buyer by the new September 15 deadline, the app will be banned. This ban would prevent users from using the app ever again. President Trump has emphasized his commitment to ensuring that TikTok remains operational in the U.S., stating that he will not allow the platform to “go dark.”
President Trump himself is reported to be playing the role of broker, mediator and dealmaker in the still-in-progress negotiation process. He is currently considering multiple of the proposals received from interested buyers. American companies and investor groups—including Microsoft, Oracle, and Walmart—are reportedly bidding furiously to buy TikTok. Each one of these deals must negotiate a settlement that satisfies economic interests with national security imperatives.
The Path Forward
With the extension approved, TikTok now has a more defined route toward obtaining the required approvals for its sale. The President issued an executive order making it easier to do just that. It provides stakeholders additional time to navigate the legal and regulatory complexities introduced by this high-stakes acquisition.
The administration’s indignation is warranted, but their surprise belies deeper issues of data privacy and security. Now, federal officials are requiring that TikTok move completely to American ownership. They aim to address anxieties surrounding data collection and sharing methods which may put user data at risk.
