Trump Extends TikTok Ban Deadline to December in Strategic Pivot

Washington shifts timeline as TikTok negotiations enter critical phase.

Policy maneuver

The White House pushes its TikTok divestment deadline to December—buying time for a potential resolution that avoids an outright ban. Oracle remains the leading contender to acquire TikTok's US operations, though deal specifics stay under wraps.

Market implications

Social media stocks get a temporary reprieve while crypto markets barely flinch—proving once again that digital assets operate in a parallel universe to traditional tech regulation. Another day, another deadline extension in the political theater that somehow still moves NASDAQ more than actual innovation.

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The move comes as negotiations between U.S. and Chinese officials appear to be making progress toward a deal that WOULD allow TikTok to continue operating in the United States under new ownership.

According to The Wall Street Journal, a consortium of American investors, including Oracle (ORCL), Silver Lake, and Andreessen Horowitz, is expected to take control of TikTok’s U.S. business.

A Framework Deal Takes Shape

The ongoing debate over TikTok’s future stems from fears that ByteDance could be compelled to share U.S. user data with the Chinese government.

Treasury Secretary Scott Bessent confirmed that both sides have agreed to a framework for the deal, which would create a new U.S.-based entity to run TikTok domestically. According to WSJ, U.S. investors are expected to hold about 80% of the new company, while Chinese shareholders will retain the remaining stake.

To address national security concerns, TikTok’s U.S. version would reportedly operate on a modified recommendation algorithm licensed from ByteDance. This setup would allow American regulators to oversee data privacy, content moderation, and algorithmic transparency, while maintaining the app’s Core user experience.

Trump is expected to speak with Chinese President Xi Jinping later this week to finalize the deal. If successful, the agreement could allow TikTok to remain in U.S. app stores and avoid a shutdown.

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