LOS ANGELES (AP) - As the deadline for a potential deal regarding TikTok approaches this week, President Donald Trump has expressed confidence that his administration can negotiate a successful agreement with ByteDance, the app's China-based parent company. Speaking to reporters on Air Force One late Sunday, Trump acknowledged the "tremendous interest" in TikTok and stated his desire for the platform to "remain alive." This statement comes just days before an April 5 deadline that necessitates ByteDance's divestment or the implementation of a ban on TikTok in the United States.
Trump mentioned the existence of "a lot of potential buyers," indicating that negotiations are moving forward. He also remarked that his administration is "dealing with China," suggesting that the Chinese government has a vested interest in the future of TikTok. Notably, he hinted that he would consider reducing tariffs on China should the government approve a sale of TikTok's U.S. operations. The ongoing uncertainty surrounding the app has persisted since the enforcement of a law requiring ByteDance's divestment began on January 19. After his inauguration, Trump restored TikTok a 75-day reprieve by signing an executive order that deferred the enforcement of this statute until the first week of April.
Throughout his first term, Trump attempted to ban TikTok citing national security concerns, but efforts were impeded by judicial interventions before any sale negotiations could effectively proceed. His position sought to evolve during the previous presidential election, where he credited TikTok for helping him gain a noticeable portion of the young vote, stating, "I won the young vote by 36 points. Republicans generally don’t do very well with the young vote. I think a lot of it could have been TikTok."
Details regarding the negotiations and potential deals remain sparse, with Trump suggesting that if necessary, the April 5 deadline for a TikTok deal could be extended. Earlier, he proposed a joint venture where the U.S. would hold a 50% stake, although specifics of such a deal haven't been fully disclosed. TikTok and ByteDance have not publicly addressed the ongoing discussions, and it remains unclear if there has been any change in ByteDance's firm stance against selling TikTok, a position they had maintained publicly as of early last year.
Concerning the implications of the April 5 deadline, if ByteDance does not finalize a sale to an approved buyer by this date, the original law banning TikTok would resume enforcement across the nation. However, the executive order's timeline appears flexible, and Trump has reiterated the potential for extensions if necessary. This executive decision emerged after the Supreme Court upheld a federal law mandating ByteDance's divestment or the prohibition of TikTok, and after a brief suspension of TikTok's services in the U.S., which was resolved when Trump promised to delay the ban.
As negotiations progress, inquiries about potential buyers are emerging. Various interested parties include startups, consortia, and established tech firms. Noteworthy among them is the artificial intelligence startup Perplexity AI, which has been in contact regarding a merger proposal with ByteDance that would integrate Perplexity's operations with TikTok's U.S. unit. Additionally, a consortium led by billionaire Frank McCourt, which features Reddit co-founder Alexis Ohanian as a strategic adviser, has made a $20 billion cash offer for TikTok's U.S. operations, pledging to redesign the app using blockchain technology to enhance user control over data.
Meanwhile, Jesse Tinsley, the founder of Employer.com and additional consortium members, claims to be offering more than $30 billion for TikTok. In a broader landscape of interested bidders, figures such as Trump's former Treasury Secretary Steve Mnuchin and the conservative-friendly video platform Rumble have also entered the dialog. In March, Rumble expressed readiness to join a coalition interested in acquiring TikTok, aiming to serve as a technology partner to the app.
