TikTok’s Chinese parent company, ByteDance, is reportedly entering negotiations with the United States government to discuss possible arrangements that would allow the video-sharing app to avoid a full sale of it’s U.S. operations.
MarketWatch reports that TikTok’s Chinese parent company, ByteDance Ltd., is entering negotiations with the United States government to discuss possible arrangements that would allow the video-sharing social media app to avoid a full sale of its U.S. operations.
The discussions have risen in prominence since the Chinese government took steps recently to make the sale of TikTok to a U.S. tech giant such as Microsoft more difficult. The negotiations take place as the deadline imposed by President Trump for TikTok to agree to a sale of its U.S. operations or face shutdown approaches.
A number of options remain for the app and a sale is still possible, according to people familiar with the matter. Even if a full sale of TikTok’s operations does not go ahead, the company could restructure to some degree to avoid shutting down, according to one source. This could involve a deal in which TikTok takes on a partnership with a U.S. tech firm that would help secure its data and possibly take a minority stake in the company.
The main concern for the officials involved in the talks has been TikTok’s data security and keeping U.S. user data out of the reach of the Chinese government. President Trump has repeatedly stated that he wants an American firm to buy the operations, it is unclear whether the suggested alternatives would meet the requirements of the President’s executive orders.