TikTok continues negotiations with Washngton on sale of US assets
Despite the change in US administrations, TikTok is continuing negotiations with the federal government about a potential sale of its American operations and how to address national security concerns, according to a person familiar with the discussions.
The popular video-sharing app, owned by the Chinese tech giant ByteDance, has engaged in talks for months with the Committee on Foreign Investment in the US (CFIUS), an inter-agency entity led by the Treasury Department, following a review over how the app shares the data it amasses about its users.
Then-president Donald Trump first raised those national security concerns during the summer, and maintained a campaign for ByteDance to sell off TikTok's US operations. The American tech giant Oracle Corp and retailer Walmart have been in talks with ByteDance for months to finalise a deal for TikTok's US assets.
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On Wednesday, The Wall Street Journal reported that the sale had been shelved indefinitely as the result of a review under the Biden administration.
But the discussions with CFIUS are continuing with little change under the new Biden administration, said the person, who spoke on condition of anonymity because the process is not public.
Also on Wednesday, Jen Psaki, the White House press secretary, denied any planned TikTok review, saying it was "not accurate to suggest there is a new proactive step by the Biden White House" concerning TikTok.
There is "no timetable for review of TikTok or other issues related to Chinese tech companies," Psaki said. Reports about the TikTok sale being cancelled may be a "conflation of two ongoing processes" - the CFIUS negotiations and the lawsuits now pending in courts, she said.
The CFIUS process, the person noted, may drag on. Discussions now concern how much of the company American buyers should own in order to address the data security issues.
CFIUS has said that American companies needed to own more than 50 per cent of TikTok's US operations. Options may include adding the existing stakes owned by American hedge fund investors into the total to reach the threshold.
A Walmart spokesman declined to comment on the sale negotiations. Representatives at TikTok, Oracle and the Treasury Department did not immediately respond to requests for comment.
This article originally appeared on the South China Morning Post (SCMP).
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