Trump re-extends TikTok divestment deadline as video app is hit with $58 billion lawsuit
- Marijan Hassan - Tech Journalist
- Apr 9
- 2 min read
President Donald Trump on Friday extended a looming deadline for Chinese tech giant ByteDance to divest TikTok’s U.S. operations, offering the embattled video app a 75-day reprieve amid mounting legal and geopolitical tension - including a new lawsuit seeking $58 billion in damages.
The move pushes the deadline to mid-June, giving TikTok more time to avoid a ban that was originally set to take effect in January under a 2024 law. Trump cited the need for “more work to ensure all necessary approvals are signed,” and said on social media that he hopes to “continue working in good faith with China,” despite ongoing tariff clashes between the two nations.
TikTok, which is used by over 170 million Americans, remains in the crosshairs of U.S. lawmakers and regulators who argue the app poses a national security threat due to its Chinese ownership. ByteDance has acknowledged ongoing talks with the U.S. government but says a final agreement has not been reached. The deal will need to get a nod from the Chinese government to go ahead.
On the other end, Trump has revealed that four potential buyers are in discussion, though he did not name them.
$58 billion lawsuit adds new pressure
In a new twist of events, TikTok Global, the US-based entity created to oversee operations of the popular video-sharing app in America, has filed a lawsuit against TikTok Inc., its parent company ByteDance, and ByteDance founder Yiming Zhang, seeking no less than $58 billion in damages.
The suit accuses the Chinese parent company of antitrust violations, intellectual property theft, and deliberately sabotaging TikTok Global’s acquisition attempt under the guise of complying with US law. TikTok Global alleges that it submitted a $33.3 billion bid in 2020, later updated to $58 billion in 2024, only to be blindsided by ByteDance’s secretive deal-making with Oracle.
“The game was rigged from the start,” the complaint reads, accusing ByteDance of “erecting insurmountable barriers to entry” and maintaining control over TikTok’s U.S. operations through a “facade of legal compliance.”
TikTok Global is seeking damages of no less than $58 billion or control of any U.S. assets that ByteDance is forced to divest.
