TikTok sale faces new delay as negotiations hit standstill

Tuesday 16 December 2025 - 09:20

By: Dakir Madiha

TikTok sale faces new delay as negotiations hit standstill

The U.S. government has again extended the deadline for TikTok’s parent company, ByteDance, to divest its American operations after talks between Washington and Beijing stalled. The extension, issued through a new executive order, pushes the January 23, 2026 deadline further, leaving millions of American users uncertain about the app’s future.

The prolonged delay stems from the lack of progress in negotiations over a proposed framework agreement that would transfer partial ownership of TikTok’s U.S. division to American and allied investors. Under the unconfirmed arrangement, Oracle Corporation, Silver Lake, and Abu Dhabi-based MGX would hold a 45 percent stake, while ByteDance would retain less than 20 percent. Oracle would manage data security and the U.S. algorithm, which would be licensed rather than fully sold.

Beijing has not endorsed or commented on the proposal, further clouding prospects for a final resolution. Several potential investors including Frank McCourt’s Project Liberty group supported by Reddit co-founder Alexis Ohanian and entrepreneur Kevin O’Leary have confirmed funding capacity but remain unable to proceed without clear approval.

Former President Donald Trump previously cited national security concerns, alleging that ByteDance could share user data with the Chinese government, accusations both TikTok and ByteDance strongly deny. Despite legislative pressure, the administration has granted multiple extensions while maintaining that discussions are ongoing.

The repeated postponements highlight the geopolitical and commercial complexities surrounding TikTok’s ownership. With over 170 million users in the United States, the app remains a dominant player in social media even as its future ownership structure remains unresolved.