TikTok: Trump signs executive order on TikTok deal; but deal remains incomplete; find out how..
US President Donald Trump signed an executive order on Thursday, clearing the way for the sale of TikTok's US unit. However, the deal is not yet complete and will require regulatory approval from both the US and China.
What's the deal?
Under this deal, TikTok's US assets will be transferred to a new US-based joint venture. This group will include American companies and investors such as Oracle, Silver Lake, Dell CEO Michael Dell, and Fox Corp. The new company's board will also be majority American. ByteDance's stake will not exceed 20%.
What did Trump say?
During the signing event, Trump said that Chinese President Xi Jinping had approved the deal. However, Beijing has not publicly confirmed this. TikTok's algorithms and data will remain under Oracle's supervision. This order comes under the ban-or-sell law, which came into effect in January 2024. According to this agreement, ByteDance will be required to sell approximately 80% of its US unit to non-Chinese investors. The deal will also include ByteDance's other popular apps, Lemon8 and CapCut. The White House estimates the new company's value at approximately $14 billion.
Many Questions Remain
Although much of the deal has been finalized, several questions remain, such as: Will American users be required to download a separate US TikTok app after this deal? Will TikTok's algorithm be influenced by the political leanings of the new US investor group? Trump jokingly said, "If I could make it 100% MAGA (Make America Great Again), I would, but that won't happen. Everyone will be treated fairly."
What is China's strategy?
Experts believe China is using this deal as a bargaining chip in trade negotiations. Trump and Xi Jinping will meet face-to-face at the APEC summit in South Korea next month, where further clarity on this issue may emerge. The deal is a welcome relief for the 170 million US TikTok users, who will now be able to continue using the app, but the debate over data security and control over algorithms continues.
Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
