Trump Grants TikTok 90-Day Extension for US Divestment

President Donald Trump is set to sign an executive order this week, granting TikTok's owner, ByteDance, a third extension to divest the app. This 90-day extension will push the deadline to September, allowing more time for negotiations and ensuring that the app remains operational for American users. The White House has stated that this period will be used to finalize a deal that guarantees the safety and security of user data.

The initial order, signed in early April, provided a 75-day extension after a potential deal to sell the app to American owners was put on hold. This latest extension marks the third time Trump has delayed the ban, which was initially set to take effect the day before his January inauguration. The federal law requiring TikTok's sale or ban on national security grounds has been a contentious issue, with Trump previously expressing support for a ban or divestment but later reversing his position.

Trump has indicated that he is fond of the video-sharing app and has a "little warm spot in my heart for TikTok." He has also stated that a group of purchasers is ready to pay ByteDance a significant amount for the app's US operations. The president remains confident in finding a buyer for TikTok's US business, despite national security concerns and the belief in Washington that TikTok is controlled by the Chinese government.

The ban on TikTok has become a symbol of the US-China tech rivalry, with the app serving as a flashpoint in the digital control battle between the two nations. Trump's initial 75-day delay of the ban upon taking office was followed by a second extension, pushing the deadline to June 19. The president has also mentioned that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over his tariffs on Beijing.

ByteDance has confirmed talks with the US government, stating that key matters needed to be resolved and that any deal would be subject to approval under Chinese law. Possible solutions include existing US investors in ByteDance rolling over their stakes into a new independent global TikTok company, with additional US investors, such as Oracle and private equity firm Blackstone, being brought on to reduce ByteDance's share in the new TikTok. Much of TikTok's US activity is already housed on Oracle servers, and the company's chairman, Larry Ellison, is a longtime Trump ally.

Uncertainty remains, particularly over what would happen to TikTok's valuable algorithm. The algorithm is a crucial component of TikTok's success, and without it, the app would lose much of its appeal. Meanwhile, TikTok continues to operate as usual, introducing new features such as a "Symphony" suite of generative artificial intelligence tools for advertisers to turn words or photos into video snippets for the platform.

The extension provides more time for negotiations and ensures that American users can continue to enjoy the app while the administration works to finalize a deal that addresses national security concerns. The White House has emphasized that the extension is aimed at ensuring the safety and security of user data, and that the administration will work diligently to close the deal within the 90-day period.