TikTok Sale on Hold as Biden Conducts Due Diligence

After Trump's aggressive approach, Biden takes a step back for review.
Anthony RussoFeb 10,2021,17:51

The Trump administration's plan to force the sale of TikTok has been put on hold as a new White House regime overviews the matter.

According to a report by The Wall Street Journal, the efforts by the federal government to pressure the sale of the popular short video app “have been shelved indefinitely.”

Before Joe Biden, Donald Trump’s administration took an aggressive approach on TikTok. In the summer, Trump signed an executive order banning TikTok if it wasn't sold by its Chinese parent ByteDance.

While ByteDance struck a preliminary deal with software firm Oracle (NYSE: ORCL) and retail giant Walmart (NYSE: WMT) in September, it was never finalized. Confusion ensued over the ownership structure of the new entity, TikTok Global.

Meanwhile, Trump's ban on TikTok was blocked by separate federal court rulings.

Now, the Biden administration wants to conduct its own due diligence of possible intrusions to U.S. data privacy and security by foreign governments.

“We plan to develop a comprehensive approach to securing U.S. data that addresses the full range of threats we face,” Emily Horne, the spokeswoman for the National Security Council, told the WSJ.

She added, “This includes the risk posed by Chinese apps and other software that operate in the U.S. In the coming months, we expect to review specific cases in light of a comprehensive understanding of the risks we face.”

Talks between ByteDance representatives and U.S. national security officials are continuing, according to the WSJ.

Earlier this week, digital marketing and advertising agency Wallaroo Media estimated that TikTok had roughly 80 million monthly active users in the U.S.

Both Oracle and Walmart traded about 1% lower intraday Wednesday.

Topics:TikTok, ByteDance, Biden, Trump, Oracle, Walmart.