Trump says four bidders in play for TikTok deal ‘soon’
Sign up now: Get ST's newsletters delivered to your inbox
Several potential buyers have expressed interest in the fast-growing TikTok that could be worth as much as US$50 billion (S$66.5 billion).
PHOTO: REUTERS
Follow topic:
ABOARD AIR FORCE ONE – US President Donald Trump said on March 9 he was negotiating with four different possible buyers for TikTok’s US business and that a deal for the social video app could come “soon”.
“We’re dealing with four different groups, and a lot of people want it,” Mr Trump told reporters aboard Air Force One.
He didn’t specify the contenders nor say which way he was leaning, instead saying “all four are good”.
ByteDance’s TikTok faces a deadline of April 5 to strike a deal for its US operations – or be banned from the country under a bipartisan law passed during the Biden administration.
The US is by far its most important market – ByteDance operates a sister service, Douyin, at home in China – and TikTok US was estimated to be worth as much as US$50 billion (S$66.6 billion) in 2024.
Last week, Mr Trump said he would be open to extending the deadline again if necessary, but thought a deal was possible in the next month.
He has already pushed back the initial Jan 19 date, averting a prolonged TikTok blackout, and has repeatedly signalled he is open to striking a deal.
As he has tried to broker a sale, the President has said he believes the US should be granted a 50 per cent stake in the company as a condition.
Beijing-based ByteDance has not indicated any interest in selling off its US operations, though TikTok’s chief executive officer Chew Shou Zi met Mr Trump at Mar-a-Lago in December and attended his inauguration
The company has made efforts to allay national security concerns among US lawmakers so as to be able to continue operating in the country.
Closely held ByteDance is now valued at more than US$400 billion by key investors like SoftBank Group Corp.
The company is buying back employee shares at a US$312 billion valuation, showing confidence in an expansion strategy that includes a growing presence in e-commerce that leverages the popularity of its video platforms.
That is a big jump from just over a year ago, despite the uncertainty shrouding its prized US business.
China’s government would also need to approve any potential sale, and public pronouncements from Beijing have to date been unsupportive.
Officials have been evaluating a potential option that involves Mr Elon Musk acquiring the service in the US, though the strong preference is for TikTok to remain wholly within ByteDance, Bloomberg News reported.
Mr Musk, who already owns the X social network, has said he is not interested.
The public bidders to date include a group led by billionaire Frank McCourt and Reddit co-founder Alexis Ohanian
Mr Trump has also floated Oracle Corp founder Larry Ellison’s name and TikTok has worked with Oracle on the hosting of its US users’ data. BLOOMBERG
