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3w ago

TikTok Nears Deal to Avoid U.S. Ban as April 5 Deadline Looms

President Trump signals negotiations are close to finalizing a structure involving U.S. investors, though key issues like China's approval and algorithm control remain unresolved.

In this photo illustration, the social media application logo, TikTok is displayed on the screen of an iPhone on an American flag background on August 3, 2020 in Arlington, Virginia.
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A 3D printed Tik Tok logo is seen in front of U.S. flag in this illustration taken October 6, 2020. Picture taken October 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • TikTok faces an April 5 deadline to divest from Chinese ownership or be banned in the United States, as mandated by a 2024 federal law citing national security concerns.
  • President Trump stated that negotiations are 'very close' to a deal, with a proposed structure involving a new entity with reduced Chinese ownership and increased U.S. investment.
  • Key unresolved issues include China's approval of the deal and the fate of TikTok's algorithm, which is central to the app's operations and user experience.
  • Amazon's last-minute bid to acquire TikTok is reportedly not being taken seriously, while private equity firms like Blackstone and Andreessen Horowitz are seen as frontrunners in the negotiations.
  • Trump has suggested offering tariff relief to China as part of the deal, leveraging trade negotiations to secure Beijing's approval for the sale.