Trump to unveil TikTok America plan to skirt US ban, says The Information
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More news: President Donald Trump plans to announce his plan for a new company called TikTok America, The Information reported citing an unnamed source.
The proposed structure would involve TikTok America being roughly 50% owned by new US investors and licensing TikTok’s algorithm from ByteDance.
Existing investors in ByteDance would have a roughly one-third stake, while ByteDance would retain a 19.9% stake, according to the report.
That structure would put ByteDance’s ownership just under the 20% threshold required in the US law passed last year requiring TikTok to sever ties with its parent company or face a ban.
With the new structure, Trump could deem a qualified divestiture has happened under the law, which was upheld by the Supreme Court.
The context: The planned announcement comes ahead of a Saturday deadline Trump set to delay enforcement. A timeframe of roughly 90 to 120 days from Wednesday to finalise a deal is expected. The proposed name is not final and could change, according to the source.
The White House and TikTok have not commented on the report. Andreessen Horowitz and Blackstone have mulled taking a stake.
It comes as Amazon submitted a last-minute bid, which parties involved do not appear to be taking seriously.
Amazon tables last minute bid to buy TikTok, NYT says
The news: Amazon has made a surprise last-minute bid to buy TikTok, days before a Saturday deadline for the app to separate from its Chinese owner or be banned in the United States, The New York Times reported citing three unnamed sources.
The offer was delivered via letter to Vice President JD Vance and Commerce Secretary Howard Lutnick, a person briefed on the matter told the paper.
Various parties involved in the talks are not taking the bid seriously, according to the same sources.
The context: President Trump, who delayed enforcement of the law mandating TikTok’s sale even after it was upheld by the Supreme Court, is scheduled to meet with top White House officials on Wednesday to discuss the app’s fate.
The president had previously said there were four separate groups vying to take over the Chinese app’s operations in the US.
A potential alternative deal that has also been discussed would sidestep a formal sale by bringing in a number of new US investors, including Oracle and Blackstone, though it is unclear whether that structure would satisfy the federal law.
The numbers: TikTok has 170 million US users and e-commerce links with Amazon, which previously launched and dropped a similar feature called Inspire.
TikTok’s valuation remains contested, with estimates varying from USD20 billion ($31.8 billion) to more than USD300 billion, depending on whether its algorithm is factored in.
What they said: Amazon declined to comment to the publication while TikTok has not commented publicly.
The sources: The New York Times, The Information
