Negotiations between the Chinese company ByteDance and the American Microsoft on the sale of The Tiktok app have been suspended, sources say.
Sources say that negotiations may resume when the US administration explains its position.
According to the WSJ, in recent weeks, the White House has made it clear that it would prefer to see the American division of TikTok under the control of an American company.
According to Axios,” a deal is on the table” for Trump. Although the White House usually does not have the authority to prohibit such transactions, the interagency committee on foreign investment is now examining the 2017 acquisition of ByteDance by the social network Musical.ly, which was eventually merged with TikTok.
However, it is not clear on what legal grounds Trump can block The Tiktok deal.
Reuters reported that ByteDance is going to get rid of a stake in the US division of TikTok. The company tried to maintain a minority stake, but the American administration opposed it.
The day before, it was reported that ByteDance and Microsoft are in talks to sell TikTok. Trump announced plans to ban the Chinese app. He also said that he would not support the purchase of TikTok by any American company.