Beijing (PingWest)- ByteDance is likely to miss the deadline imposed by the Trump administration for the sale of TikTok’s U.S. assets as China’s new tech export controls have complicated deal talks with bidders Microsoft Corp and Oracle Corp, Bloomberg reported on Thursday.
ByteDance likely needs beyond the U.S. executive order ban on Sept. 20 to reach an agreement with either of the parties due to the Chinese regulatory review, the report said, citing people familiar with the matter.
U.S. President Donald Trump has signed two executive order to force ByteDance to sell the U.S. operations of the video app to a U.S company within 90 days, otherwise TikTok will banned in the United State.
Microsoft has emerged earlier as a lead contender to acquire TiTok in August. Later, Twitter had also approached ByteDance to talk the possibilities of acquiring U.S. operations of TikTok.
Following Microsoft and Twitter, Oracle is reportedly to join the race to acquire TikTok.
In August Walmart also said that it is partnering with Microsoft to make a bid for the US operations of TikTok.
Walmart has expressed huge interest in buying TikTok because the TikTok deal would help it to expand its advertising business and grow its third-party marketplace.
However, TikTok sale negotiation is facing hurdle as China’s Ministry of Commerce updated its export control in August 30 that revised a list of technologies that are restricted for export. The list has cover AI-based algorithm, which is the core of TikTok’s recommendation engine, it recommends the video content to users based on analysis of your behavior.
With the recommendation engine, users stick to TikTok because they feel that TikTok is smart enough to match the video content with their preference.
Following the new rule announced by China’s Ministry of Commerce, ByteDance quickly issued a statement on August 30, saying it will strictly follow the new technology export rules and managed its related export businesses according to the rule.