It seems that TikTok may not be purchased by a US company after all. ByteDance is allegedly looking for ways to avoid selling all of its video streaming app’ US operations. At the same time, the company is said to be in talks with the Trump administration to avoid the ban.
We know that President Trump has been looking for ways to ban TikTok from being used in the United States since August 1, and he has even signed a couple of executive orders to give ByteDance some time to sell its US operations. The last executive order gives ByteDance until November 12 to close a possible sale to a US company.
A new report from the Wall Street Journal claims that ByteDance has been working to avoid a full sale of its US operations.
“Discussions around such an option have risen in prominence since the Chinese government took steps that make a sale to a U.S. technology giant like Microsoft Corp. more difficult, the people said. They take place against a fast-approaching deadline that President Trump imposed for TikTok to agree to a sale of its U.S. operations or else be shut down, and as geopolitical wrangling over the app intensifies.
“A number of options remain on the table, the situation is fluid and a sale is still a possibility, the people said. Even if there isn’t a full sale, the outcome would likely involve some sort of restructuring of TikTok, one of the people said. That could involve a deal in which TikTok takes on a U.S. technology partner that helps secure its data and potentially takes a minority stake.”
The United States government doesn’t seem to be against this idea, and according to a tweet by CNBC, they are discussing every possible option.
BREAKING: ByteDance & the U.S. government are discussing options that could allow it to avoid a sale of TikTok – Dow Jones pic.twitter.com/cWy78vjluQ— CNBC Now (@CNBCnow) September 9, 2020
However, ByteDance is going against the clock to close a possible deal. To make matters even more complicated, the Chinese government could also start to make changes in its rules on tech exports that could block a possible TikTok sale. Still, Microsoft with Walmart may be the best positioned to close a possible deal to purchase TikTok, or at least most of its US operations.