Introduction
The U.S. President will review a proposal regarding TikTok on Wednesday as the app faces an April 5 deadline to secure a non-Chinese buyer or risk a ban. A White House official confirmed the details of the meeting and ongoing negotiations involving key stakeholders.
Context
The Oval Office meeting will include:
- Vice President JD Vance
- Commerce Secretary Howard Lutnick
- National Security Adviser Mike Waltz
- Director of National Intelligence Tulsi Gabbard
Reports indicate that a private equity firm is exploring involvement with ByteDance's current non-Chinese shareholders, including Susquehanna International Group and General Atlantic, to provide capital for a bid on TikTok's U.S. operations.
Developments
On Sunday, Trump expressed confidence that a deal with ByteDance, which would affect the short video app used by 170 million Americans, would be finalized before the April 5 deadline. This deadline was established in January, requiring TikTok to secure a non-Chinese buyer due to national security concerns linked to a 2024 law.
Additionally, U.S. venture capital firm Andreessen Horowitz is reportedly negotiating to invest in TikTok as part of efforts spearheaded by Trump to gain control of the app. Co-founder Marc Andreessen, a supporter of Trump, is seeking new outside investments to buy out TikTok's Chinese investors within a bid led by Oracle and other American entities.
Last Friday, Reuters noted that private equity firm Blackstone is considering a move in relation to TikTok, based on insights from two sources.
Conclusion
TikTok and Andreessen Horowitz have not yet responded to Reuters' requests for comment. The ongoing discussions revolve around a strategy for the major non-Chinese investors in ByteDance to increase their stakes and take over the app's U.S. operations, a plan first reported last month. Trump also stated last month that his administration was in contact with potential parties regarding a TikTok deal, although he did not disclose their names.
The White House is effectively acting like an investment bank in the high-profile sale of TikTok, with Vance overseeing the auction process.