President Donald Trump has indicated the presence of a potential buyer for the US operations of TikTok, the widely used social media app owned by China’s ByteDance Ltd. However, he has decided to keep the specifics under wraps for the next two weeks.
What Happened: During a conversation with Fox News’s Sunday Morning Futures, Trump said, “We have a buyer for TikTok, by the way. I think I’ll need probably China approval and I think President Xi will probably do it,” as per a Bloomberg report.
Trump, who had earlier extended the deadline for ByteDance to offload TikTok’s US operations, did not reveal the identity of the potential buyer. He merely referred to them as a “group of very wealthy people.” The interview was aired on Sunday, but was recorded on the preceding Friday.
In the previous year, a law was enacted by Congress mandating ByteDance to divest its US operations of TikTok due to concerns over national security.
However, the progress on the deal has been significantly delayed due to the rising tensions surrounding US-China trade and tariff negotiations.
Also Read: Trump Expresses Reluctance To Escalate China Tariffs, Hints At Trade Deal
Prior to the announcement of widespread tariffs in April, a deal seemed to be on the horizon, with a consortium of US investors including Oracle Corp. (NYSE:ORCL), Blackstone Inc. (NYSE:BX), and venture capital firm Andreessen Horowitz expressing interest.
Why It Matters: The sale of TikTok’s US operations has been a topic of intense discussion and speculation due to the political and economic implications it carries.
The potential buyer’s identity, once revealed, could significantly impact the dynamics of the tech industry, particularly in the realm of social media.
Furthermore, the deal’s progress could serve as a barometer for the state of US-China relations, which have been fraught with tension due to ongoing trade and tariff disputes.
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