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Trump Administration to Consider TikTok Deal Proposal Ahead of Deadline
President Trump is expected to deliberate on a final proposal for a TikTok deal this Wednesday, ahead of the approaching Saturday deadline. Simultaneously, new reports indicate that Andreesen Horowitz has joined the discussions to potentially acquire the video-sharing platform from its current Chinese investors.
White House Meeting Scheduled to Finalize TikTok Plan
Senior officials from the Trump administration are slated to convene in an Oval Office meeting with the President to present the finalized particulars of their strategy, according to CBS News sources familiar with the situation.
Attendees at the meeting are anticipated to include Vice President Mike Pence, who has been leading the negotiation efforts, alongside Treasury Secretary Steven Mnuchin, national security advisor Robert O’Brien, and Director of National Intelligence John Ratcliffe.
Deadline Looms for TikTok Sale
Trump faces a Saturday deadline to identify an acceptable purchaser for TikTok. This follows an executive order which postponed the enforcement of a federal law that would prohibit the app unless its China-based parent company, ByteDance, divested its ownership.
The President retains the option to grant another extension to the deadline.
Andreesen Horowitz in Talks for Stake in TikTok
In a separate report, the Financial Times revealed that venture capital firm Andreesen Horowitz, focused on technology investments, is engaged in talks to procure a stake in TikTok. This is part of a proposed arrangement to spin off the app’s operations within the United States.
Consortium Led by US Investors Emerges as Frontrunner
Andreesen Horowitz, under the leadership of Marc Andreessen, a known ally of President Trump, would collaborate with a consortium of ByteDance’s existing American investors. This group—comprising Susquehanna, KKR, General Atlantic, and Coatue—aims to secure larger shares in the newly independent US TikTok entity, as per the Financial Times’ sources.
This investor group, which also incorporates Oracle, owned by Larry Ellison, is viewed as the leading contender to acquire TikTok, as previously reported.
No Official Comments from Key Parties
Representatives for Andreessen Horowitz have refrained from issuing any comments. TikTok and the White House have not yet responded to requests for statements.
National Security Concerns Drive Action Against TikTok
Initial congressional action was spurred by apprehensions regarding the potential national security risks posed by TikTok’s Chinese ownership.
According to the Financial Times, Andreessen Horowitz was approached about a prospective investment by “TikTok’s advisors and the White House” and is “seriously considering making an investment.”
Other Investment Firms Consider TikTok Involvement
Additional asset management firms, including Blackstone Group, have also reportedly been approached regarding potential investments in TikTok.
Divestment Requirement to Avert US Ban
The law enacted by Congress mandates that ByteDance fully relinquish its stake in TikTok or face a complete prohibition within the United States. A buyout of Chinese investors could aid the Trump administration in gaining congressional support for the agreement.
Allegations of Data Misuse and Algorithm Manipulation
Federal authorities have asserted that Beijing could exploit TikTok’s recommendation algorithm to influence public sentiment among its over 100 million American users. They also allege improper data access for potential espionage against Americans, among other accusations. TikTok has refuted these allegations of misconduct.
Senator Marco Rubio (R-FL), acting chairman of the Senate Intel Committee, has advocated for total divestment by China and voiced reservations about ByteDance maintaining any involvement.
Chinese Government Approval and Potential Minority Stake
However, any sale of TikTok would necessitate approval from the Chinese government. Reports suggest that ByteDance might retain a minority stake in TikTok even after a possible transaction.
President Trump Hints at Imminent Deal Announcement
Earlier this week, President Trump indicated to reporters that his administration would publicize the terms of a TikTok arrangement prior to Saturday’s deadline.
“We have numerous potential buyers. There is significant interest in TikTok,” President Trump told reporters late Sunday, according to Reuters. “The decision will ultimately be mine, through the authority granted by Congress. They have empowered me to make this decision.”
“I would prefer to see TikTok continue operating,” President Trump added.