President Donald Trump’s administration may be going soft on TikTok as it’s looking at safeguarding the popular app through a possible deal that would have China maintain control of the algorithm that will be leased to a U.S. company with a minority stake. Trump will sign an executive order that will extend the deadline to sell or face a ban in the United States.
ByteDance faces an April 5 deadline for TikTok to be banned if it is not sold. The Chinese parent company is being forced to sell its widely popular social media platform or face a complete ban. But President Trump has a strategy up his sleeve. He is using tariffs on China as a negotiating tactic to achieve a deal on a TikTok sale.
“We have a situation with TikTok where China will probably say, we’ll approve a deal, but will you do something on the tariff?” he told the media aboard AirForce One on Thursday. “The tariffs give us great power to negotiate.
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Amazon Wants TikTok
Jeff Bezos Amazon has shown keen interest in TikTok and has sent a letter to the Trump administration to bid for the app. But the global e-commerce giant faces antitrust scrutiny. Other potential buyers are AppLovin, a mobile advertising technology company, and Oracle.
American media reports say the law bans the establishment or maintenance of any operational relationship between the U.S. app and any formerly affiliated entities that are controlled by a foreign adversary, including any cooperation with respect to the operation of a content recommendation algorithm.
TikTok’s popularity is owed to the algorithm, and this is a source of national security concerns over Chinese ownership of the app. Sources say buyers are demanding liability protection and are willing to spend billions on TikTok if there are guarantees that they won’t be sued by the next administration. Moreover, potential buyers are looking for indemnification or an adjustment to the law, which would need congressional action.
