According to The Wall Street Journal and The New York Times, the proposed agreement suggests that American investors would control 80% of TikTok, while Chinese firms, including ByteDance, would retain the remaining 20%.
The US had previously passed legislation in April 2024, which aimed to ban TikTok from January 19, 2025, unless it divested from its Chinese ownership. However, the Trump government did not enforce it.
According to Trump's order, there are 120 days to complete this deal. This is the fifth time the deadline has been extended, and now it is expected that the deal will be completed by January. Previously, former President Joe Biden passed a law ordering TikTok to either sell to an American company or face a ban.
ByteDance had filed a lawsuit against the Biden administration, but the company received relief after Trump came into power. Trump had appealed to the Supreme Court to postpone the ban so that ByteDance could have time to find an American buyer.
Confirmation still pending:
The group of investors involved in the deal is not yet fully determined. Oracle, Silver Lake Management, and Abu Dhabi's MGX are reportedly in talks to invest in the deal and take a seat on the board, but negotiations are still ongoing.
Additionally Trump has approved the deal, but confirmation from China is still pending. The Chinese embassy in Washington stated, "The U.S. should provide an open, fair, and non-discriminatory environment for Chinese investors."
Concerns
Trump had earlier assured that the new American-led TikTok would address security and safety concerns. He had highlighted the involvement of figures like Larry Ellison, the Chief Technology Officer of Oracle, emphasizing Oracle's role in ensuring the platform's security.
This deal could start a new chapter for TikTok in the United States, but some questions remain, such as China's approval and the final agreement of the investors. If everything goes well, TikTok's American business will be completely under American control, and users' data will also be kept secure.
There are also questions regarding the deal's value. The US Deputy Secretary JD Vance, who helped shape the deal, said that the new company would be worth approximately $14 billion (₹1.24 lakh crore), but the final decision will be made by the investors.
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