The us administration has banned a deal to buy ByteDance a music service Musical.ly
On August 14, 2020, US President Donald Trump signed a new decree that invalidates the purchase of the short video service by the Beijing-based company ByteDance in 2017 Musical.ly. This project was later transformed into a shared social platform based on TikTok.
According to the text of the decree, ByteDance and its subsidiaries, including affiliates and Chinese shareholders, are required to give up all assets in the United States related to the work of TikTok within 90 days. These companies also need to get rid of users ' personal data collected using TikTok or Musical.ly in the United States.
The new restrictions for ByteDance were adopted by the US administration after additional verification of the transaction for the purchase of Musical.ly by the United States Committee on foreign investment (CFIUS). The regulator has found there are threats to the national security of the country.
Earlier on August 7, President Donald Trump signed a decree banning TikTok in the US. This decision will take effect on September 15. After that, "any transactions of any person" will be prohibited in relation to any property subject to US jurisdiction related to ByteDance, Tencent, or their subsidiaries. The only way to avoid blocking a Chinese social network maybe for another company to buy its American share.