TikTok’s parent company ByteDance is poised to miss the Trump administration’s deadline to sell its U.S. operations or face a ban.
Bloomberg reports that new Chinese regulations have complicated the company’s talks with bidders Microsoft and Oracle. As the deadline is just 10 days away, ByteDance likely needs more time to finalize a deal, according to people familiar with the matter.
The company has been told that any deal it wants to make has to be approved by Chinese officials first. ByteDance must present information about technical and financial issues to the officials. The review is expected to take time, and the officials haven’t provided ByteDance with any information about what kind of deal would be acceptable.
Microsoft and Oracle are both reportedly not dissuaded by the new Chinese regulations, and have asked ByteDance to get clarification about the new rules. It’s unknown how much Microsoft, which is partnered with Walmart in its bid, and Oracle are bidding.
ByteDance is racing to finalize a deal with the companies as it attempts to satisfy both governments, bidders and shareholders. Recent reports have also suggested that ByteDance is trying to discuss other options with the Trump administration to avoid a ban.
The Trump administration is reportedly divided about whether ByteDance should be given more time to finalize a deal or to move forward with the ban. The administration has called the app national security risk.
ByteDance has also sued the Trump administration in an attempt to block the executive order and has denied that its app poses a security threat.