President Donald Trump signed an executive order on [date] that effectively approves the sale of TikTok's U.S. operations to an American investor group, allowing the social media app to continue operating in the country.
According to TechCrunch, Vice President JD Vance stated that the deal would value TikTok US at around $14 billion. The agreement meets national security concerns by ensuring ByteDance's ownership stake is below 20% and introducing safeguards to protect American users' data, as reported by NPR News.
The executive order bars the attorney general or Department of Justice from enforcing a national security law originally signed by former President Joe Biden for 120 days while the divestiture plan presented to Trump is executed. ByteDance, TikTok's owner, has not yet publicly acknowledged the deal or executive order but did issue a statement on September 19 that it will work in accord with the U.S. government.
The agreement has significant implications for the global tech industry, with market analysts predicting a potential boost to US-based companies that will benefit from increased access to TikTok's vast user base. According to NPR News, this development is expected to have far-reaching consequences for the industry as a whole.
TikTok was required to divest its American business or face being banned in the U.S. via the national security law. The executive order essentially approves the sale of TikTok's U.S. operations to an American investor group, paving the way for the app to continue operating in the country.
The deal is seen as a major victory for ByteDance and its investors, who have been working tirelessly to resolve the issues surrounding TikTok's ownership structure. According to TechCrunch, the sale of TikTok US will be valued at around $14 billion, making it one of the largest tech deals in recent history.
The executive order is set to expire after 120 days, at which point the Department of Justice will reassess the situation and determine whether the divestiture plan has been successfully executed. If not, the national security law may be enforced, potentially leading to TikTok's ban in the U.S.
In a statement, ByteDance said it would work in accord with the U.S. government on the deal, but did not provide further details. The company has faced intense scrutiny over its ownership structure and data collection practices, which have raised concerns among regulators and lawmakers.
The sale of TikTok US is expected to have significant implications for the global tech industry, with market analysts predicting a potential boost to US-based companies that will benefit from increased access to TikTok's vast user base. According to NPR News, this development is expected to have far-reaching consequences for the industry as a whole.
As the situation continues to unfold, it remains to be seen whether the deal will ultimately succeed in addressing national security concerns and allowing TikTok to continue operating in the U.S.
This story was compiled from reports by TechCrunch and NPR News.
