With less than a month remaining before the deadline to sell TikTok in the US, its Chinese owner has yet to initiate negotiations with potential buyers. Meanwhile, interested companies are becoming increasingly frustrated by the lack of access to the platform’s financial and technical details.
Axios reports that the situation is further complicated by the absence of clear direction from the US administration. Initially, Treasury Secretary Scott Bessent, as chair of the Committee on Foreign Investment in the United States (CFIUS), was expected to oversee the deal. However, Vice President JD Vance now appears to have taken control of the process.
Political and Market Complications
The Chinese authorities have not publicly commented on the matter, leaving uncertainty surrounding the negotiations. One source compared the situation to “juggling four balls when one of them is invisible.” Various deal structures have been proposed, yet no consensus has been reached on the final format.
In terms of timing, April 5 is unlikely to be a firm deadline. Trump previously extended the ban on TikTok in the US for 75 days without legal grounds, leading experts to believe he may do so again. Additionally, signing even a preliminary agreement could justify extending the deadline under last year’s legislation. Senator Edward Markey has also proposed a 270-day delay for the sale, though his initiative has not yet progressed in Congress.
Future Prospects and Government Involvement
Amid ongoing uncertainty, Trump has suggested creating an American sovereign wealth fund to purchase TikTok, adds NIX Solutions. Michael Grimes, a former top banker at Morgan Stanley, has been appointed to lead this initiative. However, many experts consider the plan unrealistic due to the high level of US government debt.
As negotiations remain stalled, the situation continues to evolve. We’ll keep you updated on any further developments.