U.S. President Donald Trump declared that a deal for TikTok satisfied the requirements of the U.S.’ sale-or-ban law for the Chinese-owned short-video app, following months of deliberations. “I have determined that the proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security,” Trump wrote in an executive order. “We have very good controls, it’s going to be as secure as you can be,” he added. Trump also reiterated that Chinese President Xi Jinping had given him the “go-ahead” on the deal during a phone call. Speaking at the Oval Office alongside Trump, Vice President J.D. Vance said the new version of TikTok will be valued at around USD14 billion. “Ultimately, the investors are going to make the determination about what they want to invest in and what they think is proper value,” he said, adding that details about “who exactly is involved in the deal” will be announced “in the days to come”.
For years, Washington lawmakers have warned that TikTok’s ownership makes it beholden to the Chinese government and that Beijing could use the app to spy on Americans or conduct influence operations. Last year, then-U.S. President Joe Biden signed into law a bill requiring TikTok to be sold or banned if a “foreign adversary” retained control – defined as a stake of 20% or more. The law set a January deadline and allowed for a one-time extension if “significant” progress towards a sale was evident, but President Trump has repeatedly delayed its enforcement. The executive order did not specify a timeline for the deal with Beijing, but it delayed enforcement of the TikTok law by 120 days from the day of the order. Trump had already extended the deadline to mid-December – the fourth such extension – a move that came a day after Washington and Beijing announced they had reached a “framework” for a TikTok deal during trade talks in Madrid.
The new app is expected to be owned by a joint venture between a U.S. investor consortium that includes Oracle and private equity firm Silver Lake, and current parent company ByteDance, which would retain a minority stake and take one of seven board seats. American investors will own around 80% of the app, while ByteDance and its affiliates will own less than 20%, the South China Morning Post reports.
