President Donald Trump is expected to grant another extension on the TikTok divestment deadline, as ByteDance, the Chinese tech giant behind the app, strengthens its financial footing with soaring revenue and a $330 billion valuation.
Fourth Deadline Extension Expected
The Trump administration will likely extend the Sept. 17 deadline requiring ByteDance to sell or shut down TikTok's U.S. operations, reported Reuters, citing a source familiar with the matter.
If confirmed, this would mark the fourth reprieve since the original January 2025 deadline.
Trump has wavered publicly, telling reporters Sunday: "I may or may not, we’re negotiating TikTok right now. We may let it die, or we may, I don’t know, it depends, up to China… It doesn’t matter too much. I’d like to do it for the kids."
Critics in Congress from both parties are frustrated, warning that repeated delays undermine the law mandating TikTok's U.S. divestment.
TikTok, ByteDance and the White House did not immediately respond to Benzinga's request for comments.
Deal Stalled By Beijing's Algorithm Restrictions
Talks over a potential U.S. buyout have been hampered by Beijing's resistance to allowing TikTok's prized algorithm to be transferred or shared.
A planned spinoff earlier this year was shelved after China signaled it would not approve the deal, following Trump's announcement of steep new tariffs on Chinese goods.
For the first time, TikTok was formally listed as an agenda item in trade talks between Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng in Spain on Sunday.
A deal is not expected before Sept. 17, the source said.
ByteDance Shows Financial Strength
While TikTok's U.S. future remains uncertain, ByteDance is signaling confidence through a new employee share buyback program that values the company at over $330 billion, up from $315 billion six months ago.
Last month, it was reported that employees would be offered $200.41 per share, a 5.5% increase. Uniquely, ByteDance funds these buybacks directly from its balance sheet rather than outside investors.
The program follows robust financial results: ByteDance's second-quarter revenue surged 25% year-over-year to $48 billion, outpacing Meta Platforms Inc. (NASDAQ:META) as the world's top social media company by sales.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
