President Donald Trump is anticipated to grant one other extension on the TikTok divestment deadline, as ByteDance, the Chinese language tech big behind the app, strengthens its monetary footing with hovering income and a $330 billion valuation.
Fourth Deadline Extension Anticipated
The Trump administration will probably lengthen the Sept. 17 deadline requiring ByteDance to promote or shut down TikTok’s U.S. operations, reported Reuters, citing a supply conversant in the matter.
If confirmed, this could mark the fourth reprieve for the reason that unique January 2025 deadline.
Trump has wavered publicly, telling reporters Sunday: “I could or might not, we’re negotiating TikTok proper now. We might let it die, or we might, I don’t know, it relies upon, as much as China… It doesn’t matter an excessive amount of. I’d love to do it for the youngsters.”
Critics in Congress from each events are annoyed, warning that repeated delays undermine the legislation mandating TikTok’s U.S. divestment.
TikTok, ByteDance and the White Home didn’t instantly reply to Benzinga’s request for feedback.
Deal Stalled By Beijing’s Algorithm Restrictions
Talks over a possible U.S. buyout have been hampered by Beijing’s resistance to permitting TikTok’s prized algorithm to be transferred or shared.
A deliberate spinoff earlier this 12 months was shelved after China signaled it will not approve the deal, following Trump’s announcement of steep new tariffs on Chinese language items.
For the primary time, TikTok was formally listed as an agenda merchandise in commerce talks between Treasury Secretary Scott Bessent, U.S. Commerce Consultant Jamieson Greer and Chinese language Vice Premier He Lifeng in Spain on Sunday.
A deal will not be anticipated earlier than Sept. 17, the supply mentioned.
ByteDance Reveals Monetary Power
Whereas TikTok’s U.S. future stays unsure, ByteDance is signaling confidence by a brand new worker share buyback program that values the corporate at over $330 billion, up from $315 billion six months in the past.
Final month, it was reported that staff can be provided $200.41 per share, a 5.5% improve. Uniquely, ByteDance funds these buybacks straight from its steadiness sheet fairly than exterior traders.
This system follows sturdy monetary outcomes: ByteDance’s second-quarter income surged 25% year-over-year to $48 billion, outpacing Meta Platforms Inc. META because the world’s prime social media firm by gross sales.
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Disclaimer: This content material was partially produced with the assistance of AI instruments and was reviewed and revealed by Benzinga editors.
