Popular social network TikTok is still operating in the United States under a ban that has been paused by U.S. President Donald Trump, but it's possible that a deal for the sale of company is closer to being completed.
Trump this week said that he identified a buyer to purchase TikTok from ByteDance, and according to Bloomberg, Trump's pick is an investor consortium that includes Oracle, Blackstone, and Andreessen Horowitz. The consortium was previously the top choice to buy TikTok back in April, but negotiations stalled due to trade tensions.
Any deal for TikTok has to be approved by Chinese President Xi Jinping, who has previously declined to allow negotiations to move forward. "We have a buyer for TikTok, by the way," said Trump. "I think I'll need China approval, and I think President Xi will probably do it." Chinese Foreign Ministry spokesperson Mao Ning said on Monday that China has "reiterated its principled position," and there was nothing to add, suggesting that China plans to continue to resist a deal for TikTok.
TikTok has been banned in the U.S. since January 19, and the law requires the social network to be sold to a non-Chinese company. Under the terms of the law, app stores are supposed to stop distributing the TikTok app or face consequences, but Trump has paused the enforcement of the mandate three times now.
The original deal with the investor consortium would have seen 50 percent of TikTok's U.S. business transferred to a new unit that would be owned by outside investors. Existing U.S. investors would continue to own 30 percent of TikTok's U.S. operations, and ByteDance would still have just under 20 percent ownership.
TikTok continues to be available for download.
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