02 July 2021
A new executive order signed by US President Donald Trump has been issued to TikTok but this one brings good news for the affected company. The latest order buys more time for ByteDance to work on the details and do the necessary. The latest executive order comes just over a week after a separate order was issued to ban all transactions between ByteDance and US companies within 45 days. ByteDance was also quick to fend off the executive order as it criticized the decision.
Now, going by the new executive order by President Trump, ByteDance is given 90 days to either sell or spin of TikTok’s US operations. Microsoft appears to be currently on the top of the list of bidders, followed by others, including some Chinese bank investors. Interestingly, Twitter is on the bidders’ list as well but there seems no concreteness in the plan yet.
The original deadline to sell TikTok’s US operations to bidders like Microsoft was mid-September but it has now been extended to November 12. So, ByteDance has an ample amount of time to think and decide how things should proceed in the country.
Also, as part of the new executive order, ByteDance will need to destroy all TikTok data associated with United States users and inform the Committee on Foreign Investment in the United States when the process is completed. Additionally, the order also notes that there is “credible evidence” the ByteDance “might take action that threatens to impair the national security of the United States.”
ByteDance responded to Trump’s latest order with the following statement:
“As we’ve said previously, TikTok is loved by 100 million Americans because it is a home for entertainment, self-expression, and connection. We’re committed to continuing to bring joy to families and meaningful careers to those who create on our platform for many years to come.”