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| The TikTok deal faces a new hurdle with China's restrictions on technology sales |
With the expiration date approaching in the US, the sale of TikTok in the US faces new hurdles, putting the app at risk of an effective ban.
The deal is expected to be announced in a previous CNBC report on September 1, but there is no news on the deal at this time. Last Friday, Chinese authorities imposed new restrictions on the export of tech products that may force China to agree to sell its algorithms to TikTok, which is one of the app's core values.
The alliance between Oracle and Microsoft Walmart (Walmart) is the leading candidate for Monday's deal, but the Wall Street Journal reported Tuesday evening that new Chinese restrictions have complicated and lengthy deal negotiations. . Sources previously reported to CNBC said the value of transactions using the algorithm is expected to be between $ 20 billion and $ 30 billion. However, if the algorithm is not included in the transaction, the price may drop.
Bloomberg reported on Tuesday that new Chinese regulations have prompted Gang Gaming, founder of TikTok's parent company ByteDance, to rethink its selection. A source familiar with the matter told the agency: Chinese and US officials should agree on what could make the deal bypass the US presidential election in November.
If treaty negotiations continue until November or later, the proposal may be blocked de facto in the United States by order of President Donald Trump. Trump initially signed an order to prevent US companies from doing business with ByteDance on September 20, but then signed an order to compel the company to sell or sell TikTok business in the US by November 12. Separated.
Administrative changes that may occur after Election Day provide TikTok with another opportunity to negotiate with the US government. this is; TikTok filed a lawsuit against the Trump administration over the injunction and rejected the company's due process.