Trump Greenlights TikTok Sale to US Investors with New Executive Order

Trump Advances TikTok Deal with New Executive Order President Donald Trump signed an executive order on Thursday, giving his formal blessing to a deal for a consortium of mostly U.S. investors to take over the short video app TikTok. The move comes after months of negotiations and follows a law passed last year requiring ByteDance, the parent company of TikTok, to divest or face a ban in the United States due to national security concerns. The executive order states that the deal meets the "qualified divestiture" standards required by Congress, ensuring that the app is no longer controlled by a foreign adversary. Under the agreement, ByteDance will own less than 20 percent of the new entity, and the new venture will be run by a board of directors subject to rules protecting Americans' privacy. "I have determined that the proposed divestiture would allow the millions of Americans who enjoy using TikTok to continue doing so," Trump said in a statement. "This deal has good controls in terms of security and safety." The deal is seen as a significant development for both TikTok and its investors, with some analysts predicting a boost in user engagement and revenue for the app. "TikTok's popularity has been growing exponentially, and this deal will only accelerate that growth," said Dan Ives, managing director at Wedbush Securities. "The new ownership structure will provide more transparency and accountability, which is essential for the app's continued success." The executive order also addresses concerns over data security and user privacy, with Trump stating that the new entity will be subject to strict rules governing the collection and use of user data. "TikTok has been a thorn in the side of U.S. regulators due to its ties to China," said Michael Beckerman, president and CEO of the Internet Association. "This deal is a positive step towards addressing those concerns and ensuring that TikTok can continue to operate in the United States." The deal still requires approval from the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments for national security risks. While some lawmakers have expressed skepticism about the deal, others see it as a necessary compromise to allow TikTok to continue operating in the United States. "This deal is a step in the right direction, but we must remain vigilant and ensure that any new ownership structure does not pose a risk to national security," said Senator Marco Rubio (R-FL), who has been critical of TikTok's ties to China. The current status of the deal remains uncertain, with some analysts predicting a smooth transition while others express concerns about potential delays or setbacks. As the situation continues to unfold, one thing is clear: the fate of TikTok hangs in the balance, and its future will depend on the success of this new ownership structure. Background TikTok has been at the center of a heated debate over national security and data privacy concerns. The app's ties to China have raised eyebrows among U.S. regulators, who worry that user data could be compromised or shared with Chinese authorities. In response, Congress passed a law requiring ByteDance to divest or face a ban in the United States. Market Impact The deal is expected to have significant market implications for both TikTok and its investors. Analysts predict a boost in user engagement and revenue for the app, as well as increased transparency and accountability. Economic Impact The deal could also have economic implications for the U.S. economy, with some analysts predicting an increase in job creation and investment in the tech sector. Next Developments The deal still requires approval from CFIUS, which will review the new ownership structure for national security risks. If approved, the deal is expected to be finalized by year-end. *Reporting by Npr.*