US nears deal on TikTok - Trump
Investors are already lined up to buy the app (Photo: Getty Images)
President Donald Trump stated that the US is close to presenting a plan that will prevent the Chinese social media platform TikTok from being blocked in America, reports Bloomberg.
"We’re very close to a deal with a very good group of people," Trump said to reporters aboard Air Force One.
The White House chief confirmed that he was prepared to offer a reduction in tariffs in exchange for China's assistance in approving the possible sale of TikTok by its Beijing-based owner, ByteDance. At the same time, Trump warned that he had no information on whether the Chinese authorities would accept such an approach.
"You have a situation with TikTok where China will probably say, we’ll approve a deal but will you do something on the tariff? The tariffs give us great power to negotiate. They always have," he said.
According to people familiar with the matter, Trump made the statement the day after reviewing a proposal from a consortium of American investors, which included Oracle Corp, Blackstone Inc, and venture firm Andreessen Horowitz, which became the leading contender.
According to two individuals, the Trump administration's efforts to find a buyer are being led by US Vice President JD Vance, with a deadline set for Saturday, April 5. However, planning remains uncertain, and the consortium is still in the preliminary stages. Still, in recent weeks, Trump has publicly indicated that he will extend the deadline for completing the deal.
According to the proposal reviewed by the US president, new foreign investors would own 50% of TikTok’s US business in a unit that would be spun off from ByteDance. Existing investors would own around 30% of the business.
Sources also said that ByteDance's stake in the new US entity would fall slightly below 20%, allowing the company to comply with a US law passed last year, which requires companies to cease operations in America or face a ban.
The proposal calls for leaving TikTok's influential algorithm within ByteDance, and then licensing it to the new US entity. Oracle would take a small stake in the company and provide security assurances.
What preceded this
Initially, ByteDance was required to sell TikTok by January 19. The relevant law was passed by a bipartisan coalition and signed by then-US President Joe Biden in 2024.
These measures were a response to concerns that the Chinese government could use TikTok to gather confidential information about US citizens or to influence them through the app’s content algorithm.
However, after returning to the White House, the new president, Donald Trump, extended the deadline for the app's sale to allow more time for negotiations.
