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TikTok’s sale of its US operations might not be completed for at least another month. According to sources who spoke to CNBC’s David Faber, an agreement between the US and China could be reached within the next 30 to 45 days. Meanwhile, Oracle will continue to be the app’s cloud partner, ensuring US user data remains on American servers.
On Monday, Treasury Secretary Scott Bessent informed reporters that the US and China have come to a “framework deal” for TikTok. He mentioned that President Donald Trump is expected to approve the deal on Friday, which is two days after TikTok’s latest deadline to divest. Trump has already provided TikTok with three extensions to negotiate the deal, and it’s uncertain if another extension will be granted as TikTok works on finalizing the agreement.
TikTok’s future in the US became uncertain after the federal government enacted the Protecting Americans from Foreign Adversary Controlled Applications Act. This law requires TikTok to separate from its Chinese parent company, ByteDance, to avoid a US ban due to national security concerns.
On Tuesday, an article in The Information indicated that the US and China have reached an agreement concerning the licensing of TikTok’s algorithms and other intellectual property rights. Earlier reports suggested TikTok might release an independent version of its app for US users. According to CNBC, some investment firms, including current ByteDance shareholders, could acquire control over TikTok’s US operations.
“I’m hearing it’s [the deal] actually going to be relatively small regarding the actual size of the checks written for the entity itself, and it will not be something that is going to go public at some point,” Faber mentioned on CNBC’s Squawk on the Street.
