ByteDance has been given a week, to auction TikTok’s U.S. operation and escape a suspension.
ByteDance, the Chinese parent of TikTok, has been told by the Committee on Foreign Investment (CFIUS) that it now has until Dec. 4 to negotiate a contract. The extension came after it was moved back to Nov. 27 after the initial deadline of Nov. 12.
Treasury spokesman told reporters that CFIUS had granted the extension “to allow time for a revised submission to be reviewed” that it had recently submitted.
On Aug. 14, President Donald Trump told ByteDance that in 90 days or face being blocked in the region, it must find a suitable buyer for TikTok’s U.S. company. At the time Trump signed a CFIUS order, saying a national security danger was posed by the brief video app. TikTok has consistently denied that this creates any such threat.
The Directive states that ByteDance must “dispose of any tangible or intangible assets or assets, wherever they are located, used to allow or support the operation of the TikTok application by ByteDance in the United States.”
For months now, Walmart and Oracle have been negotiating a future contract, but little has materialized. At different times, other firms, including Microsoft, were also in the running.
Earlier this month it was reported that TikTok had not had a substantive conversation with CFIUS for weeks. At the time, TikTok executives were also involved in completing a technological collaboration with Oracle to resolve national security issues, even though President-elect Joe Biden was not as concerned with the risk profile of TikTok under Chinese ownership.