Trump Plans To Announce 'TikTok America' As US Ban Deadline Looms
Update (1704ET):
The Information reports that the Trump administration plans to announce a newly proposed company called 'TikTok America,' which would be 50% owned by new U.S. investors and would license TikTok's algorithm from the Chinese company ByteDance. Existing ByteDance investors would retain a 33% stake in the new company, while ByteDance itself would hold approximately 19.9%.
*WHITE HOUSE CLOSE TO ENDORSING DEAL FOR TIKTOK US; NEW OUTSIDE INVESTORS TO INCLUDE BLACKSTONE: FT
— zerohedge (@zerohedge) April 2, 2025
*BYTEDANCE WOULD RETAIN 19.9% STAKE IN NEW COMPANY; TIKTOK AMERICA TO BE 50% OWNED BY NEW US INVESTORS: INFORMATION
Here are more details from the report:
That structure would put ByteDance's ownership just under the 20% threshold required in the U.S. law passed last year requiring TikTok to sever ties with its parent company or face a ban. With the new structure, Trump could deem a qualified divesture has happened under the law, which was passed by Congress last year and upheld by the Supreme Court.
The planned announcement comes ahead of a Saturday deadline, which Trump set to delay enforcement of the divest-or-ban law. The Trump administration is expected to spell out a timeframe of roughly 90 to 120 days from Wednesday to finalize a deal, the person said. The proposed new company name is not finalized and could change, the person said.
It's unclear which new investors will be involved in the deal. Earlier, media outlets reported that Andreessen Horowitz, Blackstone, Oracle, and Amazon could be taking a stake in TikTok America.
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Update (1328ET):
By late lunch, a report from The New York Times specified that Amazon had submitted a last-minute bid to acquire all of TikTok from its parent company, ByteDance, ahead of the April 5 deadline. In a separate report, CNBC's David Faber indicated that a TikTok deal could be announced today. These two developments come ahead of President Trump's scheduled unveiling of reciprocal tariffs at around 4 p.m. EST. However, no specific timing was provided for when the TikTok deal might be announced.
Here's more color from the NYT report:
Various parties who have been involved in the talks do not appear to be taking Amazon's bid seriously, the people said. The bid came via an offer letter addressed to Vice President JD Vance and Howard Lutnick, the commerce secretary, according to a person briefed on the matter.
Amazon's bid highlights the 11th-hour maneuvering in Washington over TikTok's ownership. Policymakers in both parties have expressed deep national security concerns over the app's Chinese ownership, and passed a law last year to force a sale of TikTok that was set to take effect in January.
Separately, CNBC's David Faber on the "Halftime Report" pointed out that the TikTok deal could be finalized as soon as today:
So we're coming up on the date by which some deal needs to be done. What I'm hearing today, in addition, of course, what we're hearing from the New York Times in terms of Amazon's interest and I was hearing this this morning, Scott, is that we may get an announcement involving the future of TikTok today, along with perhaps so much else that's coming at us. Not completely clear, but April 5 is the deadline. So of course, that is looming, regardless of whether it is as soon as today, and while the New York Times is reporting this on Amazon and they do say that it sort of may not be taken as seriously by those involved, I've been tracking a deal that has perhaps more of a chance, which is simply one in which you would essentially dilute down the ownership of ByteDance below 20%, allow many of the current owners of ByteDance to step up, bring in new capital and essentially say it is no longer controlled by Chinese adversary. Oracle would still be involved in that are again, people may recall that Oracle is where the servers are housed for TikTok.
The White House is managing a lot today, from a potential TikTok deal to the announcement of new tariffs.
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Ahead of President Trump's reciprocal tariff announcement across all US trading partners later today, the president will meet with senior administration officials to review a final proposal for the Chinese social media app TikTok. The deliberations come before a Saturday deadline, by which TikTok must complete a sale to a non-Chinese entity or face a US ban.
CBS News cited sources familiar with the upcoming meeting in the Oval Office that said Vice President JD Vance, Commerce Secretary Howard Lutnick, National Security Adviser Mike Waltz, and Director of National Intelligence Tulsi Gabbard would be present. It's unclear whether Trump will approve the final proposal today, given that today is "Liberation Day." The report noted that Blackstone and Oracle are potential investors.
At the start of Trump's first term, he signed an executive order granting a 75-day extension for TikTok's parent company, ByteDance, to sell the app—used by 170 million Americans—to a US entity or face a nationwide ban. The deadline is Saturday, April 5, bringing the final deal down to the wire.
Over the weekend, Trump told reporters aboard Air Force One, "We have a lot of potential buyers. There's a lot of interest in TikTok. The decision is going to be my decision," adding, "I'd like to see TikTok remain alive." Trump said Monday there was "a lot of enthusiasm for TikTok."
In a separate report, the Financial Times said Marc Andreessen's venture capital firm, Andreessen Horowitz, was discussing the purchase of TikTok from ByteDance with Oracle and other investors.
Reuters noted, "In the closely watched sale of TikTok, the White House is playing the role of an investment bank, with Vance running the auction."
The Trump administration is about to have a hectic week. It will announce reciprocal tariffs later today, and it must also begin finalizing a deal for TikTok as the April 5 deadline looms.
