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TikTok logging out from the US? ByteDance unlikely to meet Trump's deadline

TikTok ban in US: ByteDance has been told by Chinese officials that any proposal must be submitted for approval with detailed information about technical and financial issues

twitter-logoBusinessToday.In | September 18, 2020 | Updated 10:02 IST
TikTok logging out from the US? ByteDance unlikely to meet Trump’s deadline
ByteDance faces obstacles in signing TikTok deal

ByteDance is likely to miss the Trump administration's deadline for the sale of TikTok's US operations after new Chinese regulations have made negotiations with Microsoft and Oracle difficult. With the new development, ByteDance would require more time beyond September 15. However, Donald Trump has said that there would be no extension of the deadline.

"I am not extending the deadline, no. It's September 15th. There will be no extension of the TikTok deadline.We'll see what happens. It'll either be closed up or they'll sell it. So, we'll either close up TikTok in this country for security reasons, or it'll be sold," Trump said to reporters on Thursday.

ByteDance has been told by Chinese officials that any proposal must be submitted for approval with detailed information about technical and financial issues. The review would take substantial time, the officials said, as mentioned in a report in Bloomberg.

Also read: Will TikTok be forced to turn fully American?

Meanwhile, Microsoft and Oracle had submitted proposals before the Chinese regulations. They are reportedly still enthused about the deal and are not concerned with Beijing's involvement. Nevertheless, the bidders have asked ByteDance to get as much clarity from Beijing on the new regulations that prohibit the export of certain artificial intelligence technologies that are used by TikTok.

The parties are still working on a preliminary deal to present to the White House before the deadline. However, as the news site mentions, ByteDance might pull out of the sale if it sees it can't satisfy both the governments.

It must be mentioned that while Trump said he wants a deal by September 15, the ban order he signed last month requires the company to act positively by September 20. Another decision by the Committee on Foreign Investment in the United States, or CFIUS has asked for the sale to be done by mid-November.

ByteDance has also sued the US government in an attempt to block the executive order. It has, additionally, denied allegations of security risks and said that no data of US citizens have been shared with China.

According to Bloomberg, TikTok's US business is estimated to be at least $20 billion. 

Also read: Donald Trump rules out extending ownership change deadline of Sept 15 for TikTok

Also read: Mukesh Ambani's RIL in talks with parent ByteDance to acquire TikTok in India

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