TikTok obtains a 15-day reprieve to restructure its US activities

Posted on Nov 15, 2020 at 11:53 am

The threat to ban TikTok in the United States has been postponed for two weeks. The app’s parent company, ByteDance, has until November 27 to restructure its international assets. On August 14, it was forced, by an executive order signed by Donald Trump, to cede its American activities within 90 days. The President of the United States justifies this request by a need for data protection of the 100 million American users of the social network, under suspicion of links with the Chinese government.

30 days requested

Tuesday, November 10, TikTok requested a 30-day extension to finalize an agreement. It is finally 15 days that the government committee in charge of foreign investments (CFIUS) granted him.

The Chinese company has been pursuing, since the start of the school year, discussions with Walmart, which would take 7.5% of the capital of TikTok Global, which includes the company’s international activities, and would become its business partner, and with Oracle, which would take 12, 5% of the capital to become its technological partner. According to the Wall Street Journal, this operation would increase the American stake in the company’s capital to 53%, because two American funds, General Atlantic and Sequoia, are already present. The Chinese are said to hold 36%. In September, Bloomberg estimated TikTok’s valuation at $ 60 billion. The company could be floated on the stock market following its restructuring.

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