President Donald Trump granted another extension for TikTok's U.S. divestment deadline as Washington and Beijing reached a framework deal that China called a "win-win," while ByteDance's valuation climbed to $330 billion through a new employee buyback program.
Trump Pushes Deadline To Dec. 16
On Tuesday, Trump signed an executive order extending the deadline for TikTok's U.S. operations until Dec. 16, marking the fourth time he has postponed the congressional mandate requiring ByteDance to divest the app, reported the Associated Press.
The original deadline was set for Jan. 19, 2025, a day before Trump's second inauguration.
Trump confirmed Monday that a framework agreement was reached after meetings in Madrid between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
"I hate to see value like that thrown out the window," Trump told reporters, signaling he wants TikTok to survive under U.S. ownership. He added that further details would be finalized in a Friday phone call with Chinese President Xi Jinping.
China Calls Agreement A ‘Win-Win'
China's state-run People's Daily praised the tentative deal, saying it was based on "mutual respect, peaceful coexistence and win-win cooperation," reported Reuters.
The editorial also noted that Beijing will review TikTok's technology exports and licensing agreements under Chinese law.
Li Chenggang, China's international trade representative, said the sides had reached a "basic framework consensus" to reduce barriers and promote cooperation.
Political And Security Stakes Remain High
The U.S. law that mandated TikTok's divestment was premised on concerns that ByteDance could expose American user data to the Chinese Communist Party.
House China Committee officials reiterated that any deal must include full ByteDance divestment and algorithm separation.
Still, Trump has shifted tone, citing TikTok's popularity among young voters. He has suggested the app helped him win support in the 2024 election, a factor he now openly links to his decision to keep extending the deadline.
ByteDance Flexes Financial Strength
Even as it faces pressure in Washington, ByteDance is strengthening its financial position.
Last month, it was reported that the company launched a new employee share buyback program that values it at over $330 billion, up from $315 billion six months earlier.
The firm reported second-quarter revenue of about $48 billion, a 25% year-over-year increase, consolidating its lead over Meta Platforms, Inc. (NASDAQ:META) as the world's top social media company by sales.
Read Next:
Photo Courtesy: Ascannio on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
