The White House will convene senior officials on Wednesday to review proposals addressing TikTok's ownership structure ahead of a pivotal April 5 deadline. This follows U.S. legislation requiring ByteDance, the app's Beijing-based parent company, to divest its U.S. operations or face a ban over national security concerns.
Vice President JD Vance, Commerce Secretary Howard Lutnick, and national security advisers will participate in the meeting, according to a White House official. The discussions center on potential deals involving U.S.-led investor groups acquiring TikTok's domestic operations.
Investor Consortiums Emerge
Private equity firm Blackstone and venture capital giant Andreessen Horowitz are reportedly exploring partnerships with ByteDance's existing non-Chinese shareholders. Their goal: form a consortium to acquire TikTok's U.S. business through fresh capital injections and stake expansions.
This aligns with former President Donald Trump's recent prediction that a deal would be struck before the deadline. His 2024 executive order mandated the divestment, citing data security risks – a concern denied by TikTok, which claims 170 million active American users.
Market Implications
The outcome could reshape Asia-U.S. tech relations, affecting investors monitoring cross-border digital policies. Analysts suggest successful divestment might ease trade tensions but raise questions about tech sector valuations and data governance standards.
