Investors anticipating the sale of popular social media platform TikTok may have to wait a couple of more months, according to an Evercore note that said a deal won't happen before the presidential election.
Analysts at the firm said a sale is unlikely before Nov. 3 and that as of Thursday negotiations between TikTok parent ByteDance and potential suitors appear to have been halted.
Evercore analyst Donald Straszheim said ByteDance is probably preparing documents for Chinese authorities as it is legally required to obtain a "letter of intent for export license" before serious negotiations can take place.
Straszheim expects ByteDance will file with authorities on Sept. 7, which would then start the "within 30 working days" clock for approval or disapproval of the deal. That deadline would be Oct. 27 27, if Evercore's timeline is correct.
Either way, Straszheim said that TikTok will go dark in the U.S. before the end of September thanks to President Trump's order that a sale between a U.S. firm and the company be completed within 45 days of the executive order he signed on Aug. 6.
Deal talks between U.S. companies and TikTok hit a snag late last week, when uncertainty arose over whether TikTok's algorithms would be included in any package.
According to The Wall Street Journal, restrictions issued by the Chinese government last Friday, which placed new rules on the export of artificial intelligence technology, threw into question whether TikTok's algorithms could be included in a sale to a U.S. buyer.
Microsoft (MSFT) - Get Report and Walmart (WMT) - Get Report jointly are pursuing a deal for the company while Oracle (ORCL) - Get Report is also in the running for the company after forming an alliance with some of TikTok's private-equity investors.