As relations between the U.S. and China deteriorate, the short-video app TikTok has emerged as a flashpoint in the dispute between the world's two largest economies. Now, the Chinese owner of the app, ByteDance has agreed to divest the U.S. operations of TikTok completely, in a bid to save a deal with the White House. The latest developments are according to two people familiar with the matter. It comes after President Trump said on Friday (July 31) he had decided to ban the popular video app. U.S. officials have said TikTok under its Chinese parent, poses a national risk because of the personal data it handles. ByteDance's concession would test whether Trump's threat to ban TikTok is a negotiating tactic... or whether he's intent on cracking down on the app. TikTok boasts it has 100 million users in the U.S. ByteDance was previously seeking to keep a minority stake in the U.S. business of TikTok, which the White House rejected. Under the new proposed deal, sources said ByteDance would exit completely and Microsoft would take over TikTok in the United States. They added that some ByteDance investors that are based in the U.S. may be given the opportunity to take minority stakes in the business. About 70% of ByteDance's outside investors come from the U.S. ByteDance in Beijing and Microsoft did not respond to a request for comment. Read More...
As relations between the U.S. and China deteriorate, the short-video app TikTok has emerged as a flashpoint in the dispute between the world’s two largest economies.
Now, the Chinese owner of the app, ByteDance has agreed to divest the U.S. operations of TikTok completely, in a bid to save a deal with the White House.
The latest developments are according to two people familiar with the matter.
It comes after President Trump said on Friday (July 31) he had decided to ban the popular video app.
U.S. officials have said TikTok under its Chinese parent, poses a national risk because of the personal data it handles.
ByteDance’s concession would test whether Trump’s threat to ban TikTok is a negotiating tactic…
or whether he’s intent on cracking down on the app.
TikTok boasts it has 100 million users in the U.S.
ByteDance was previously seeking to keep a minority stake in the U.S. business of TikTok, which the White House rejected.
Under the new proposed deal, sources said ByteDance would exit completely and Microsoft would take over TikTok in the United States.
They added that some ByteDance investors that are based in the U.S. may be given the opportunity to take minority stakes in the business.
About 70% of ByteDance’s outside investors come from the U.S.
ByteDance in Beijing and Microsoft did not respond to a request for comment.
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