In a surprise move late Friday, President Donald Trump announced a second extension for ByteDance to divest TikTok’s U.S. operations, granting the popular social media app another 75 days to remain operational in the country.
The announcement, made on Trump’s Truth Social platform, signals ongoing complexities surrounding the sale and national security vetting of TikTok. “This deal needs more time to finalize all necessary approvals,” Trump stated. “We’re keeping TikTok running for now.”
The new deadline pushes the cut-off to mid-June, buying ByteDance critical time to negotiate a resolution acceptable to both U.S. and Chinese regulators. Discussions have been ongoing since President Biden signed a law in April 2024 requiring ByteDance to complete a “qualified divestiture” of TikTok’s U.S. arm due to national security concerns. 
ByteDance confirmed the talks but emphasized that “no agreement has been signed yet” and key issues are still under review. “Any deal will also require approval under Chinese law,” a company spokesperson told CNBC.
This is the second time Trump has intervened to delay enforcement. The original deadline was set for January 19. Upon taking office, Trump issued an executive order pausing the ban, effectively giving ByteDance more time. The latest order once again stalls any penalties on U.S. app stores and service providers like Apple and Google, which had briefly removed TikTok before reinstating it in February after Trump’s first extension.
Behind the scenes, a flurry of acquisition interest has emerged. Tech giants and private equity firms are circling TikTok’s U.S. business. CNBC reports that Oracle and AppLovin remain contenders, while Amazon recently entered the race with a late-stage bid. Other potential investors include venture powerhouses Andreessen Horowitz, Blackstone, and established TikTok investors like General Atlantic and KKR, who may collectively form a new U.S.-based TikTok entity.
Another wildcard in the mix is billionaire Frank McCourt and his Project Liberty coalition, supported by Reddit co-founder Alexis Ohanian. Even AI startup Perplexity has floated a potential merger with TikTok’s U.S. division.
Still, the path forward hinges on Beijing’s blessing, as China holds veto power over any ByteDance divestiture.
The timing of Trump’s move is no coincidence. It comes just two days after he enacted a sweeping 34% reciprocal tariff on Chinese goods — raising the total levy to 54% when combined with previous measures. Trump suggested tariffs may be used as leverage to help finalize the TikTok deal, though he left open the possibility of further extensions if negotiations continue.
“This proves that tariffs are not only effective for fair trade, but also essential to national security,” Trump wrote. “We’re not trying to shut TikTok down — we’re working toward a deal that works for everyone.”
Vice President JD Vance recently hinted that a resolution may be within reach, suggesting last month that an agreement could meet U.S. security requirements while keeping TikTok’s American presence intact.
For now, TikTok has dodged another shutdown — but the clock is ticking once more.
