A deal to spin off the U.S. assets of TikTok was put on hold after China indicated it would not approve the deal following U.S. President Donald Trump's tariffs announcement this week, according to two sources familiar with the matter.
Trump on Friday extended by 75 days a deadline for ByteDance to sell U.S. assets of the popular short video app to a non-Chinese buyer, or face a ban that was supposed to have taken effect in January under a 2024 law.
The deal, the structure of which was largely finalized by Wednesday, according to one of the sources, would have spun off TikTok's U.S. operations into a new company based in the U.S. and majority-owned and operated by U.S. investors. ByteDance would hold a position of less than 20%.
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