Tuesday, November 28, 2023

The deadline for ByteDance to restructure TikTok

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A deadline for ByteDance The restructuring of TikTok’s operations went without a deal, with the Chinese company remaining in advanced negotiations over the status of the short video app in the United States.

The Committee on Foreign Investment in the United States, which is examining ByteDance’s ownership in TikTok, had not approved a deal by Friday’s deadline, according to two people briefed on the matter. They said Cfius wouldn’t do it grant an extension, after having already pushed back the deadline twice in recent weeks.

People added that Cfius was not supposed to take immediate action against ByteDance, as the parties remained in advanced talks on a deal.

ByteDance declined to comment. The US Treasury Department, which chairs Cfius, said the committee “is engaging with ByteDance to complete divestment and other steps necessary to resolve national security risks arising from the transaction.”

The developments, which were the first reported by Reuters, added to the uncertainty surrounding TikTok, as ByteDance works to strike a deal securing the future of popular app in the United States.

Under executive order signed by President Donald Trump, Cfius could force ByteDance to sell TIC TacUS operations if the committee had not signed an agreement on time.

ByteDance has been working for over a year to address concerns raised by Cfius, an interagency body that reviews transactions with foreign investors over national security issues. The committee’s investigation focused on ByteDance’s acquisition of the short video app Musical.ly, a deal that has spurred TikTok’s growth.

The Trump administration alleges that TikTok may share US user data with the Chinese government, a claim ByteDance has denied.

In November, ByteDance requested that a court review Mr. Trump’s executive order forcing the divestment of TikTok in the United States. Separately, a Pennsylvania federal judge temporarily blocked Commerce Department rules that would have effectively banned enforcement in the United States last month.

ByteDance said in a legal deposit last month that it had proposed to restructure TikTok’s U.S. operations into a new entity wholly owned by Oracle, the Silicon Valley tech group, retailer Walmart and the group’s U.S. investors. Chinese. The details of ByteDance’s most recent proposal could not be learned.

Additional reporting by Demetri Sevastopulo in Washington


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