TikTok reportedly forced to weigh new options for U.S. sale after China’s latest restrictions.
. That price would likely drop if the key technology could not be included.
The new rules out of China have prompted Zhang Yiming, founder of TikTok's parent company ByteDance, to reconsider his options,reported Tuesday. The need for approval from officials in the U.S. and China could push the deal past the November U.S. presidential election, a source familiar with the matter told Bloomberg.
ByteDance and the companies seeking to buy TikTok's U.S. business are considering four options to navigate the new restrictions from China,The first option is to sell TikTok without the algorithm, potentially expediting the sale but requiring the new owner to inject an alternative into the app. The second option is to negotiate an up to a year-long transition period with the Committee on Foreign Investment in the United States , though its unclear if China's rules would allow this in the required time frame.The fourth option is for the new buyer to license TikTok's algorithm from ByteDance. However, it's unclear if U.S. authorities would be content with any continuing relationship between TikTok and the China-based ByteDance after the sale.
If deal talks extend into November or later, the app could face an effective ban in the U.S. under President Donald Trump's executive orders. Trump initially signed an order that would
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