TikTok sale pushed by Trump ‘shelved indefinitely’: report

She did not offer a timetable for that process.

Trump targeted TikTok over the summer via a series of executive orders that cited concerns over the US data that TikTok collects from its users. But courts blocked the White House’s attempted ban from going into effect, and the presidential election soon took precedence over the TikTok fight for Trump.

While President Joe Biden has said TikTok is a concern, his administration hadn’t said whether it will continue to try to ban TikTok or force a sale.

In September, Trump gave his tentative blessing to a proposal by TikTok’s Chinese owner ByteDance involving significant Oracle and Walmart investments in TikTok and handing management of the app’s US user data to Oracle. CFIUS, however, has not completed its required review of the arrangement. A government deadline for TikTok to sell its US operations has passed.

TikTok is now looking to the US Court of Appeals for the District of Columbia Circuit to review Trump’s divestment order and the government’s national-security review.

TikTok and Oracle didn’t return requests for comment Wednesday. Walmart declined comment Wednesday and referred questions to the Biden administration.

The Treasury Department, which chairs the CFIUS agency reviewing the TikTok deal, did not reply to a request for comment. Neither did the Commerce Department, which last year had sought to enforce Trump’s orders, nor the Justice Department, which is handling the court challenges.

The Chinese government also required ByteDance to apply for an export license, but its stance toward the deal now is unclear. State media in September criticised the proposal as US bullying and extortion.

Trump cited concerns that the Chinese government could spy on TikTok users if the app remains under Chinese ownership. TikTok has denied it’s a security threat but said it was still trying to work with the US government to resolve its concerns.

TikTok said Oracle and Walmart could acquire up to a combined 20 per cent stake in the new company ahead of a TikTok initial public offering, which Walmart said could happen within the next year. Oracle’s stake would be 12.5 per cent, and Walmart’s would be 7.5 per cent.

Where Oracle stood to handle data management, Walmart said it would provide ecommerce, fulfillment, payments and other services to the new company. TikTok said in a November court filing that the new entity, owned by Oracle, Walmart and ByteDance’s existing US investors, would be responsible for TikTok’s US user data and content moderation.

The Trump administration’s aggressive tactics were part of a broader effort to counter the influence of China. During his term in office, Trump waged a trade war with China, blocked mergers involving Chinese companies and stifled the business of Chinese firms like Huawei, a maker of phones and telecom equipment.