Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Trump says TikTok will be shut out of US unless sold by September 15

Trump says TikTok will be shut out of US unless sold by September 15

In addition to Microsoft, at least two other interested buyers in the tech industry are in talks with ByteDance to acquire the video-sharing app, source says.

US President Donald Trump said on Monday that he was not opposed to Microsoft acquiring TikTok but vowed that the popular video-sharing app, which is owned by Chinese tech giant ByteDance, would be “out of business” in the United States if it is not sold by September 15.

It was the latest in a shifting series of sometimes contradictory statements Trump and his advisers have made in recent days about how to rein in TikTok, which the administration and others in Washington view as a national security threat.

The US has been reviewing the company for months, saying it could be forced to hand over millions of Americans’ user data to the Chinese government, an accusation the company has denied.

Earlier on Monday, White House trade adviser Peter Navarro said on CNN that Microsoft was “clearly a multinational company that's made billions in China … that enables Chinese censorship through things like Bing and Skype”.




Talks for ByteDance to sell TikTok’s US operations have heated up since June, when it became clear that to be able to do business in the US, TikTok would need to sever ties to its Chinese owner. The US Congress has moved forward with a bill that would prohibit federal employees from using the app on government-issued gadgets.

In addition to Microsoft, there are at least two other interested buyers in talks with ByteDance, both of which are in the tech industry, said a person with knowledge of the matter.

Microsoft started its discussions in mid-July to buy TikTok, which is valued at US$50 billion, according to the person, who asked not to be named because the discussions are private. The deal, which is an offer to buy TikTok’s US, Canada, Australia and New Zealand operations, would result in a lower valuation, said the person.

The talks between the Microsoft and ByteDance are moving forward without significant sticking points, but it will take time to agree on terms for all parties, said the person.

TikTok’s current equity investors, General Atlantic and Sequoia, have made a bid but the discussions did not advance, said the person. Private equity firms could join the bids by the strategic buyers by rolling over their stakes or sell some interests but remain owners, the person said.

“TikTok will be here for many years to come,” the company said in a statement on Monday.

TikTok was formed in 2018 through a US$1 billion takeover of Musical.ly by ByteDance. The app, which allows users to share 15-second home-made videos, has become hugely successful, particularly because of its popularity among US teenagers.




Since then, the relationship between Washington and Beijing has deteriorated. The tension has increasingly focused on the rivalry centred on future technologies as a number of Chinese tech firms have grown to become leaders in key areas such as 5G and artificial intelligence.

The US has added China’s tech giant Huawei Technologies, now the world’s largest smartphone maker and a 5G tech leader, to a so-called entity list to bar it from doing business with its American counterparts. More than 80 Chinese companies and their affiliates have since been added to the list.

The Trump administration has also blocked merger deals to prevent advanced US technologies from being sold to Chinese buyers. Since 2018, the administration has prohibited Ant Group’s US$1.2 billion proposal to buy MoneyGram and a US$117 billion attempt by Broadcom to acquire Qualcomm.

Grindr, a California-based gay dating app, was sold to a group of US investors in June after a Treasury led government body, the Committee for Foreign Investment in the US (CFIUS), forced a fire sale by its Chinese owner, Beijing Kunlun Tech, citing national security concerns.

The same committee has been reviewing ByteDance’s Musical.ly transaction since last year.

Another avenue for the government to ban TikTok would be the International Emergency Economic Powers Act (IEEPA), a 1977 law that gives the president broad authority to impose economic sanctions.

Trump would have to declare a national emergency to invoke the law, but analysts say its text is broad enough that it might apply to international transactions related to TikTok.

“If indeed the US government has been successful in forcing the leading global Chinese social media app to divest its US operations, this sets a potentially dangerous precedent,” said Paul Triolo, head of global tech policy at Eurasia Group.

“The US is basically saying, any company with a China connection cannot operate in the US if it retains ties to its China-based parent because of data privacy, censorship, or potential use to influence the US political process.”

So far, China has yet to respond. But there are signs that Beijing is directing TikTok’s recent moves.

On Monday, TikTok said it was contemplating moving its headquarters to London from California, according to a ByteDance representative.

But it is not a given that the administration pressure tactics will succeed, an analyst said.

“ByteDance isn’t without leverage. They are betting that the US can’t really ban TikTok,” said James Lewis, director of technology policy at the Centre for Strategic and International Studies.

“They can tell government employees not to use it. But the US has the First Amendment,” Lewis added, referring to the constitutional provision that prevents the government from making laws to regulate freedom of speech. “The government can’t just ban a website. We are not China.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Hungary's "Puppet" President to Be Ousted, Orbán Fumes: "Democracy Is Dead"
Forget Tinder: The Surprising Platform Where People Find Love
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
×