US President Donald Trump signed an executive order on Thursday to transfer ownership of TikTok's US operations to a group of American investors, including Oracle co-founder Larry Ellison.
The deal, valued at around $14 billion, was brokered by Vice President JD Vance and will see the Chinese-owned social media app's US business handed over to a new entity. Trump credited Vance with playing a "pivotal role" in securing the agreement, saying he had a "very good talk" with Chinese President Xi Jinping, who gave his approval for the deal.
According to Trump, the full list of investors will be released in the coming days, but those confirmed include Oracle's Larry Ellison, Michael Dell, and Rupert Murdoch. Oracle is set to play a significant role in the new entity, Trump said at a White House press conference.
The executive order marks the latest development in the ongoing saga over TikTok's ownership, which has been at the center of a national security review by the US government. ByteDance, the Chinese parent company of TikTok, was valued at $330 billion as of August.
In a statement, Trump said: "I had a very good talk with President Xi. We talked about TikTok. He gave us the go-ahead." However, the Chinese government has yet to issue an official announcement acknowledging the deal.
Vance noted that the new entity will be responsible for operating TikTok's US business, but details of the deal remain unclear. "What this deal ensures is that the American entity and the American investors will have control over the data and operations of TikTok in the United States," he said.
The transfer of ownership has raised concerns among some lawmakers and experts about national security implications. Senator Marco Rubio (R-FL) had previously called for a ban on TikTok, citing concerns over data collection and potential ties to the Chinese government.
In response to the executive order, ByteDance released a statement saying it was "committed to complying with all applicable laws and regulations" in the US. However, the company did not comment further on the deal or its implications.
The deal is set to be finalized in the coming days, with Trump indicating that the new entity will be responsible for operating TikTok's US business. The development marks a significant shift in the ownership structure of the popular social media app and raises questions about the future of TikTok in the US market.
Background:
TikTok has been at the center of a national security review by the US government, with concerns raised over data collection and potential ties to the Chinese government. In August, Trump issued an executive order giving ByteDance 90 days to divest its ownership of TikTok's US operations or face a ban on operating in the country.
Additional perspectives:
The deal has been welcomed by some lawmakers as a compromise that addresses national security concerns while allowing TikTok to continue operating in the US. However, others have expressed skepticism about the arrangement and the role of Oracle in the new entity.
Current status and next developments:
The transfer of ownership is set to be finalized in the coming days, with Trump indicating that the new entity will be responsible for operating TikTok's US business. The development marks a significant shift in the ownership structure of the popular social media app and raises questions about the future of TikTok in the US market.
*Reporting by Wired.*
