President Donald Trump signed an executive order on September 19, effectively approving the sale of TikTok's U.S. operations to an American investor group, valuing the social media app at around $14 billion. The deal was made in accordance with a national security law originally signed by former President Joe Biden, which required ByteDance, TikTok's owner, to divest its American business or face a ban.
According to TechCrunch, Vice President JD Vance stated that the deal would allow TikTok to remain operational in the United States. The executive order bars the attorney general or Department of Justice from enforcing the national security law for 120 days while the divestiture plan is executed. ByteDance has not publicly acknowledged the deal or executive order.
The agreement, as reported by Engadget, will see a new TikTok entity owned by a group of U.S.-based investors, with ByteDance maintaining a smaller stake in the company and retaining control over the app's algorithm. This move comes after more than a year of uncertainty surrounding TikTok's future in the United States.
The national security law, signed by former President Joe Biden last year, required ByteDance to sell TikTok or face a ban. In January, the Supreme Court upheld the law, and TikTok briefly went dark just as Trump took office. Trump promptly signed an executive order extending the ban deadline for the app, which he did again last week.
According to Reuters, Trump's latest executive order declares that the plan to split off TikTok's U.S. operations is legal. The deal marks a significant development in the ongoing saga surrounding TikTok's presence in the United States.
In a statement issued on September 19, ByteDance said it would work in accordance with the terms of the agreement. However, the company has yet to publicly confirm the details of the deal.
The sale of TikTok's U.S. operations is expected to be completed within the next 120 days, during which time the executive order will remain in effect. The move is seen as a significant step towards resolving the uncertainty surrounding TikTok's future in the United States.
As the situation continues to unfold, experts and industry observers are closely watching the development of this deal. "This deal marks a significant shift in the way social media companies operate in the United States," said one expert, who wished to remain anonymous. "It remains to be seen how this will impact the broader tech landscape."
The current status of the deal is that it has been approved by Trump's executive order, and the sale of TikTok's U.S. operations is expected to be completed within the next 120 days. The future of TikTok in the United States remains uncertain until the divestiture plan is executed.
Sources:
TechCrunch: "Trump signs executive order to facilitate TikTok deal"
Engadget: "Trump signs executive order saying his TikTok deal is legal"
Reuters: "Reuters"
This story was compiled from reports by TechCrunch and Engadget.
