A deal to spin off TikTok’s US assets has been put on hold after Beijing signaled it would not approve it after US President Donald Trump imposed further tariffs, Reuters reported, citing two sources.
Image source: Solen Feyissa / unsplash.com
The deal, the basic outline of which was approved last Wednesday, April 2, would have spun off TikTok’s U.S. segment into a separate company based in the U.S. and owned and operated by a majority of U.S. investors. ByteDance, which created and now owns TikTok, would have received a minority stake of no more than 20% of the new entity.
The deal was approved by TikTok’s existing investors, new investors in the platform, ByteDance, and the U.S. government. Trump said his team had made “tremendous progress” in closing the deal to buy the service. It’s still unclear who is bidding for the purchase.
But the progress was reversed after Trump imposed 34% tariffs on China this week, which was met with a retaliatory response. TikTok was briefly blocked in the US in January. After taking office, the US president extended the ban for 75 days; yesterday, it was reported that Trump had extended it again for the same period. There has been no official comment from ByteDance, the White House or the Chinese embassy in the US on the suspension of the TikTok deal.
The threat of new tariffs from the Donald Trump administration has sent Apple shares tumbling…
The threat of increasing import duties on goods from China to the United States to…
A Meta✴ spokesperson has denied rumors that the company has been deliberately improving the performance…
The threat of new tariffs from the Donald Trump administration has sent Apple shares tumbling…
The threat of increasing import duties on goods from China to the United States to…
A Meta✴ spokesperson has denied rumors that the company has been deliberately improving the performance…