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President Donald Trump has announced that he has secured a potential buyer for the US operations of TikTok, in a bid to separate the social media platform from its Chinese ownership.
In an interview with Fox News, Trump revealed, “We have a buyer for TikTok. I think I’ll need probably China approval and I think President Xi will probably do it.”
The deadline for TikTok’s owner, ByteDance, to divest its American operations has been extended multiple times, with the latest deadline set for September 17. Failure to comply could result in a nationwide ban of the app in the US.
Trump, who has acknowledged TikTok’s role in connecting with younger voters, plans to provide more details about the buyers in the coming weeks. He mentioned, “I’ll tell you in about two weeks. It’s a group of very wealthy people.”
Reports suggest that discussions for a potential deal involve a consortium of US investors, including firms like Andreessen Horowitz, Blackstone, Silver Lake, and other major private capital firms. Existing investors in TikTok would also hold stakes in the US business.
Approval from both ByteDance and the Chinese government is crucial for any potential deal to go through. China had previously expressed reluctance to approve a sale, and Trump’s tariffs on China have further complicated negotiations.
One key issue in the negotiations is the control of TikTok’s algorithm, which determines the content users see on the platform. Meeting the requirements of the executive order may necessitate a US entity having control over the algorithm.
The algorithm is a proprietary technology listed in China’s official database, making its export subject to scrutiny. The willingness of ByteDance and China to relinquish control of this technology remains a point of contention.
It is essential for any deal to address these concerns and secure approval from all relevant parties. TikTok’s response to these developments remains awaited.
Additional reporting by Stefania Palma
