Yet another deadline extension in the TikTok drama
President Donald Trump has again delayed the deadline for ByteDance to sell U.S. operations of TikTok. The new deadline, December 16, delays a ban that would have pushed the app out of American app stores and limited internet access. It is the fourth extension issued by the administration.
The move buys time for negotiations as a group of U.S.-based investors, including Silver Lake, Oracle, and Andreessen Horowitz, prepares to take over TikTok’s U.S. operations. The news was first reported by CNBC’s David Faber.
National security concerns at the core
The Trump administration has long maintained that TikTok is a national security threat, claiming that user information could be reached by the Chinese government via ByteDance, the app’s Beijing-headquartered parent company. The executive order that forms the basis of the deadline would have sanctioned the likes of Apple and Google for carrying TikTok in their app stores without a divestment agreement.
By issuing the extension, the White House has suspended temporarily enforcement of this order, giving investors and regulators more time to finish terms.
Terms of the framework deal
According to the Wall Street Journal, about 80 per cent of American business at TikTok will be sold to the investor group that is being spearheaded by the U.S. In the deal, Oracle will most likely maintain its role as TikTok’s cloud provider, so data of U.S. users will remain stored domestically.
As per the deal, existing U.S. TikTok users could be asked to switch to a different version of the app, which has been developed under the oversight of the investor group.
Even though this fact hasn’t been confirmed publicly, it implies that TikTok in the U.S. could be a different version from its global version.
The deal would be finalised within 30 to 45 days, pending final approvals.
A high-level diplomatic factor
Trump and Chinese President Xi Jinping are reported to be set to meet later this week to discuss the deal for TikTok. Treasury Secretary Scott Bessent revealed that the commercial terms of the deal were far advanced months ago but stalled as tensions between the U.S. and China increased, particularly on tariffs and trade feuds.
Bessent said Trump was in favour of letting TikTok “go dark” in the US, a position that pressured Chinese officials to come back to the negotiating table.
What’s at stake for TikTok users
For TikTok’s U.S. users, who number in the millions, the extension preserves the app for the time being. However, there may be a change later if the deal requires a shift to a different app or a new version. That could involve re-downloading TikTok under the ownership structure that Oracle and its investors have created.
Even though many details remain uncertain, a U.S. investor with majority ownership would ease security concerns about user data while keeping the app popular in the United States.
Uncertain white house signals
Even as reports of breakthroughs continue to emerge, officials at the White House are keeping their comments on guard. A senior administration official has said that all reports of the TikTok deal remain “pure speculation” until the administration makes an official announcement.
TikTok itself has not made a comment regarding the recent turn of events.
Looking ahead
The extension to December 16 is not just about retaining TikTok online. It is a balancing of the thin line between national security, international commerce, and consumer desire. On the one side, the administration wants to prevent Chinese domination of U.S. technology platforms. On the other, it is responsive to the app’s enormous user base and business prospects for American investors.
With Oracle and its financiers drawing closer to taking control of TikTok’s American operation, the coming weeks will determine whether this latest framework agreement brings closure to a decades-long war—or whether another deadline slips away.
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