This week came the deadline for agreeing on the terms of a deal to transfer control of TikTok’s American business to a consortium of American companies. This initiative was promoted by Donald Trump, but the struggle for power in the United States somewhat distracted him from this issue. ByteDance received a two-week grace period until November 27.
A similar decision was made by the Committee on Foreign Investment in the United States (CFIUS), according to news agencies Reuters and Bloomberg. Together with the cancellation of the decree to suspend US users’ access to the TikTok service, this will allow the Chinese company ByteDance to continue serving the interests of American customers until the end of November, at least.
During the court hearing, which culminated in the decision to increase the timing of the deal, ByteDance representatives complained about the lack of feedback from the American authorities to the Chinese company’s attempts to reach a compromise that would help avoid the sale of the American part of TikTok’s business. During the entire discussion of the deal, TikTok representatives have already submitted four proposals on the possible structure of the deal. Its latest option involves participation in the buyout of TikTok’s assets in the United States of Walmart, Microsoft and existing American shareholders of ByteDance.
Recall that at one time it was the discrepancies in the interpretation of the structure of the share capital that led to the postponement of the approval of the transaction. The American side believes that the participation of ByteDance in the capital of TikTok Global is unacceptable in any case, and the Chinese side claims that the presence of American investors among the owners of the assets of the parent company automatically increases the degree of US influence to the required level. The Chinese authorities also have their own requirements – they are trying to prevent the transfer of the TikTok recommendation algorithm under the control of American companies.
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