China’s ByteDance, the parent company of TikTok, has 90 days to sell or spin off its U.S. operation.
CNBC reported President Donald Trump issued an executive order Friday (Aug. 14) that forces the China company to unload the popular video-sharing app.
“There is credible evidence that leads me to believe that ByteDance … might take action that threatens to impair the national security of the United States,” Trump said in his order.
The network reported the latest order updates an earlier one from Trump Aug. 6. The president’s prior order required app stores in the U.S. to stop distributing the TikTok app if ByteDance failed to reach a deal to divest within 45 days.
The president’s latest action comes as good news for ByteDance as the order gives it more time to get a deal inked. Microsoft has been working behind the scenes to seal a purchase.
“As we’ve said previously, TikTok is loved by 100 million Americans because it is a home for entertainment, self-expression and connection,” TikTok told CNBC. “We’re committed to continuing to bring joy to families and meaningful careers to those who create on our platform for many years to come.”
Trump is not the only person who has raised questions about TikTok.
The European Union sounded the alarm with an investigation in June. India followed with a ban on TikTok and dozens of other China-based apps from its smartphone networks, citing concerns about data sovereignty.
Last week, TikTok said it planned to file a lawsuit in the U.S. District Court for the Southern District of California, the company’s U.S. base of operations. ByteDance is planning to argue that the Trump administration’s ban didn’t give the company a chance to make its own case. And, ByteDance said, the allegations are vague and unsubstantiated.
Without skipping a beat, last week TikTok signed a partnership with the New York Yankees and the YES Network. The social media company said Wednesday (Aug. 12) the storied baseball team and sports network will bring exposure to its community.
“Sports are an important part of the content experience on TikTok, and we’re looking forward to bringing the joy of the Yankees to fans across our platform,” Harish Sarma, Global Strategic Partnerships & Corporate Development, TikTok, said in the announcement.