Zinger Key Points
- While China has little incentive to sell TikTok, 'it’s not like [China] would never do it, but they will need a lot in return.'
- Trump and his billionaire pals are racing to broker a deal with an American buyer.
Negotiations over the sale of TikTok's U.S. operations appear to be at an impasse as its Chinese parent company, ByteDance, delays progress while awaiting a green light from Beijing. President Donald Trump's numerous corporate allies are racing to broker a deal with an American buyer.
China, signaling a hardline stance, could let TikTok's U.S. operations be shut down rather than approve a sale without broader trade and tech concessions from Washington, noted the Washington Post in an exclusive story published Wednesday.
The move comes amid escalating tensions following Trump's new tariffs on China, which prompted retaliation from Beijing. China also restricted exports of key minerals and launched an antitrust investigation into Alphabet Inc. GOOGL GOOG.
The stalemate could thwart Trump's efforts to "save TikTok," which were on display when he signed an executive order postponing a ban.
‘Art Of The Deal' President: Everything Is For Sale
In a Monday executive order, Trump announced plans to create the first-ever U.S. sovereign wealth fund and said TikTok might be included.
"For example, TikTok—we're going to be doing something perhaps with TikTok, and perhaps not. If we make the right deal, we'll do it, otherwise, we won't," Trump said. "I have the right to do that."
Trump said earlier this month that he was open to Tesla TSLA CEO Elon Musk buying TikTok, which may have opened a mini-bidding war among other billionaires. They include tech entrepreneur Jesse Tinsley, Roblox Corp. RBLX CEO David Baszucki, "Shark Tank" star Kevin O'Leary, Mr.Beast and business magnate Frank McCourt. Microsoft MSFT, which in 2020 was the favored choice by ByteDance's leadership, is apparently also interested in a potential deal. The going price tag? $50 billion at least.
"I like bidding wars because you make the best deal," Trump said.
What Say You, China?
China's resistance to a forced sale aligns with public sentiment. "It might be a multibillion-dollar company, but it is still a David versus the Goliath that is the U.S. government," Rui Ma, a Chinese tech analyst, told the Washington Post. Beijing has long vowed to block a sale, arguing that Washington's actions amount to "robbers' logic."
China recently softened its stance, indicating that such decisions should be determined by companies rather than government. Some observers who spoke to the outlet say TikTok has become a bargaining chip in trade negotiations and that Chinese officials are hesitant to hand Trump a win without securing concessions, such as reduced tariffs and relaxed policies on semiconductor exports.
ByteDance has little incentive to sell TikTok. Closing down its U.S. operations would be a financial hit but not catastrophic, whereas divesting could create a powerful new competitor. "It's not like [China] would never do it, but they will need a lot in return," a source told the Post. "They are willing to pull the plug."
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