A PYMNTS Company

ByteDance Is Talking With Gov To Avoid A Full Sale Of TikTok

By  |  September 9, 2020
ByteDance

ByteDance is speaking with the US government about possible solutions that may allow it to retain some ownership of the US operations of TikTok, while satisfying regulators in both China and the US. Those possibilities include handing over operational control of TikTok data to a US tech company, while potentially still holding on to some ownership of assets.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Wall Street Journal previously reported Wednesday that ByteDance was working with the US government on ways to avoid a full sale. The discussions have been taking place for months, the Journal reported, and the situation remains fluid. It’s still unclear if the Trump administration will be willing to go along with such a solution.

    The White House previously set a deadline of Sept. 20 for the Chinese-owned company to announce a plan to sell TikTok’s US operations to a US corporation, or face a shutdown in the United States by Sept. 29. Any such deal would have to be completed by Nov. 12.

    The company had been negotiating to sell TikTok’s U.S. operations to Microsoft in partnership with Walmart, or Oracle. A deal was close to completion, prompting CEO Kevin Mayer to announce his resignation.

    However, the sale hit a snag after Chinese officials introduced new restrictions on technology exports that could require Chinese approval for TikTok to sell its algorithm, which is part of the core value of the app.

    Full Content: Wall Street Journal

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.