ByteDance receives a 15-day extension of the US contract to sell TikTok

The Trump administration granted ByteDance a 15-day extension of a sales contract that had directed the Chinese company to sell its TikTok short video sharing app by Thursday.

TikTok announced the extension for the first time earlier in a court case and said it now has until November 27 to reach an agreement. Under pressure from the US government, ByteDance was in talks for a deal with Walmart and Oracle move TikTok’s US assets to a new entity.

The Treasury Department said Friday that the United States Foreign Investment Committee (CFIUS) had granted the 15-day extension “to give the parties and the committee additional time to resolve this case in a manner consistent with regulation corresponds to “.

ByteDance filed a petition in the U.S. Court of Appeals for the District of Columbia on Tuesday against the Trump administration’s disposal order.

ByteDance said Tuesday that CFIUS is trying to “force the divestment of TikTok, a billion dollar company based on technology developed by ByteDance and based on the government’s review of the Chinese company’s 2017 takeover of

President Donald Trump ordered ByteDance in an August 14 order to sell the app within 90 days.

The Trump administration claims TikTok has raised national security concerns and said US users’ personal information could be accessed by the Chinese government. TikTok, which has over 100 million US users, denies the allegations.

Trump has said the Walmart-Oracle deal had its “blessing”.

One major problem that persists is the ownership structure of the new TikTok Global, which would own TikTok’s U.S. assets.

In Tuesday’s court record, ByteDance said it filed a fourth proposal last Friday aimed at addressing US concerns “by creating a new entity wholly owned by Oracle, Walmart and existing US Investors are in ByteDance and are responsible for handling TikTok’s US user data, content moderation. “

Separate restrictions on TikTok from the U.S. Department of Commerce have been blocked by federal courts, including transaction restrictions due to go into effect Thursday. TikTok warned that its use of the app could be effectively banned in the US.

A ban on Apple’s commercial division and Google by Alphabet TikTok’s offer to download for new US users, due to go into effect on September 27, has also been blocked.

© Thomson Reuters 2020

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