President Donald Trump has announced a 75-day extension for TikTok to comply with U.S. regulations that mandate the widely used video application to divest its American operations or risk a ban. In a recent post on Truth Social, Trump stated, “We do not want TikTok to ‘go dark’. We look forward to working with TikTok and China to close the Deal.” The app is owned by the Chinese company ByteDance.
This extension follows an initial one that began in January and was set to end on Saturday. TikTok, which boasts approximately 170 million users in the United States, had briefly prepared to cease operations prior to Trump’s inauguration due to concerns from Congress regarding its potential use by China for espionage and political influence.
Concerns and Legislative Actions
The Biden administration has echoed concerns that TikTok may serve as a conduit for Chinese espionage. In response, Congress passed a bipartisan law last year granting ByteDance six months to sell its controlling interest in TikTok or face a ban in the U.S. Advocates against the ban argue that it poses a threat to freedom of speech.
The latest extension appears to be part of the Trump administration’s efforts to negotiate a sale that would transition TikTok into American ownership while keeping the platform operational within the U.S. Trump remarked, “The Deal requires more work to ensure all necessary approvals are signed.”
Potential Buyers and Market Reactions
Trump has also indicated that a deal might involve a reciprocal arrangement in which China would consent to a TikTok sale in exchange for alleviation from existing U.S. tariffs on Chinese imports. Currently, China faces a 54% tariff on goods entering the United States and has retaliated with a 34% tariff on American exports.
In recent days, several prospective buyers for TikTok have emerged. Reports indicate that Amazon has submitted a last-minute bid to acquire the platform; however, the company has not publicly commented on this development. Other potential buyers include billionaire Frank McCourt, Canadian businessman Kevin O’Leary, and Alexis Ohanian, co-founder of Reddit, who has expressed interest in joining McCourt’s bid. Additionally, major players such as Microsoft, Blackstone, Andreessen Horowitz, and Perplexity AI are reportedly exploring the possibility of acquiring a stake in TikTok.
Trump noted that his administration has been in discussions with four distinct groups interested in the TikTok deal but has not disclosed their identities. Speaking on Thursday, he emphasized that “multiple investors” are nearing a potential agreement.