ByteDance Gets 15 Day Extension On US Order To Divest TikTok
The Trump administration granted ByteDance a 15-day extension of a divestment order that had ordered the Chinese company to sell its short video sharing app TikTok on Thursday.
Tik Tok He first disclosed the extension in a court filing, saying he now has until November 27 to reach an agreement. Under pressure from the US government, ByteDance has been in talks for an agreement with Walmart and Oracle to move the US assets of TikTok to a new entity.
The Treasury Department said Friday that the Committee on Foreign Investment in the United States (CFIUS) granted the 15-day extension to “provide the parties and the committee additional time to resolve this case in a manner that complies with the Order.”
ByteDance filed a petition Tuesday with the United States Court of Appeals for the District of Columbia challenging the Trump administration’s divestment order.
ByteDance said Tuesday that CFIUS seeks to “force the wholesale divestment of TikTok, a multi-billion dollar business built on technology developed by” ByteDance and based on the government’s review of the Chinese company’s 2017 acquisition of Musical.ly.
President Donald Trump in an August 14 order had managed ByteDance to sell the application within 90 days.
The Trump administration maintains that TikTok raises national security concerns and says the Chinese government could obtain the personal data of American users. TikTok, which has more than 100 million US users, denies the allegations.
Trump has said the deal between Walmart and Oracle had its “blessing.”
One big problem that has persisted is the ownership structure of the new company, TikTok Global, which would own TikTok’s assets in the US.
In Tuesday’s court filing, ByteDance said it submitted a fourth proposal last Friday that contemplated addressing US concerns. “By creating a new entity, wholly owned by Oracle, Walmart and existing US investors in ByteDance, that I would be responsible for handling US TikTok user data and content moderation. ”
Federal courts have blocked separate restrictions on TikTok from the U.S. Department of Commerce, including restrictions on transactions scheduled to take effect on Thursday that TikTok warned could effectively ban use of the app in the United States.
A Commerce Department ban on Apple and Alphabet’s Google The ability to download TikTok has also been blocked for new US users that was scheduled to go into effect on September 27.