Trump approves TikTok Deal: US Investors to take control of ByteDance's American Operations

The deal, valued at approximately $14 billion (Rs.1.24 lakh crore), aims to address national security concerns by shifting ownership and control to US entities. This move follows extensive discussions, including a verbal nod from Chinese President Xi Jinping, though written approval from Beijing is still pending.

The agreement requires TikTok to divest its American operations within 120 days, marking the fifth extension of the deadline. Originally set under former President Joe Biden's legislation, which threatened a ban by January 2025 unless sold to US buyers, the process gained momentum after Trump's intervention. ByteDance had challenged the ban in court, but Trump's appeal to the Supreme Court allowed time for negotiations.

Key investors in the talks include Oracle, Silver Lake Management, and Abu Dhabi's MGX, who are expected to secure board seats. According to US Deputy Secretary JD Vance, the new entity will prioritize data security, with Oracle's CTO Larry Ellison playing a pivotal role. American stakeholders could control up to 80% of the platform, ensuring user data remains protected from foreign influence.

Despite optimism, challenges remain. The Chinese embassy emphasized the need for a fair environment for investors, while ByteDance reiterated compliance with Chinese laws. If finalized, this could prevent a nationwide TikTok ban, allowing the popular video-sharing app to continue serving its massive US audience.

This TikTok US sale highlights ongoing US-China tech tensions, with implications for global digital platforms. Stay updated on TikTok deal updates, ByteDance divestment, and Trump executive orders for the latest in international business news.