- Trump Signs Order Backing TikTok Deal to Stay in US
- Oracle, Silver Lake, and MGX to hold major stakes;
- Trump says app will be American operated all the way.
President Donald Trump on Thursday signed an executive order approving a proposal to keep TikTok operating in the United States through a new business arrangement valued at $14 billion, according to Vice President JD Vance.
EDITOR’S PICKS
- The Past Is Gone, I Forgive and Move On – Jonathan
- Spotify Names Ayra Starr Top Female Force in Afrobeats
- Fela Didn’t Inspire Me – Burna Boy
EKO HOT BLOG reports that the deal responds to a national security law requiring ByteDance, TikTok’s China-based parent company, to sell its U.S. operations or face a ban in the country.
Under the terms still awaiting approval from China a new joint venture will manage TikTok’s U.S. business, with ByteDance holding less than a 20% share.
Technology firms Oracle, Silver Lake, and the Abu Dhabi-based MGX investment fund will be major investors, controlling about 45% of the new company.
Meanwhile, ByteDance investors and new shareholders will hold roughly 35%, CNBC’s David Faber reported.
No ByteDance officials attended the signing, and the company has yet to confirm the deal.
There is also no public indication that the Chinese government has changed any laws needed to allow the transaction.
President Trump said Chinese President Xi Jinping approved the agreement, though Vice President Vance noted that China initially showed some resistance.
Oracle will manage the app’s security and continue providing cloud services for the new U.S. firm. Trump highlighted Oracle CEO Larry Ellison’s involvement, stating, “It’s owned by Americans, and very sophisticated Americans. This is going to be American operated all the way.”
Investors such as General Atlantic, Susquehanna, and Sequoia Capital, who back ByteDance, are expected to contribute equity in the new company.
ByteDance’s valuation was recently estimated at $330 billion, while analysts have previously suggested TikTok’s U.S. operations could be worth $30 to $35 billion.
Importantly, the deal does not give the U.S. government any ownership or special control rights in TikTok’s U.S. business.
Trump also mentioned that media mogul Rupert Murdoch and his son Lachlan, as well as Dell Technologies CEO Michael Dell, might join the ownership group alongside Ellison.
Last week, Trump signed an order extending ByteDance’s deadline to divest TikTok’s U.S. operations until December 16, temporarily blocking enforcement of the national security law that would penalize app store operators and internet providers for supporting TikTok in the U.S.
