Technology and Science26 September, 20252 min read
Trump Signs Executive Order Allowing TikTok to Operate Under US-Controlled Ownership
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Trump signed an executive order approving a $14 billion deal transferring TikTok’s U.S. operations to American investors. The deal requires ByteDance to reduce its ownership to less than 20%, with U.S. investors controlling about 80%.
54 outlets told this the same way.
TikTok Ownership and Security
Former President Donald Trump signed an executive order allowing TikTok to continue operating in the United States under a new ownership structure aimed at addressing national security concerns. This decision follows a law signed by President Joe Biden requiring ByteDance, TikTok's Chinese parent company, to divest its U.S. operations or face a ban.
“President Donald Trump has signed an executive order to allow TikTok to continue operating in the U.S. while addressing national security concerns.”
The new structure involves a U.S.-based joint venture where American investors, including Oracle and Silver Lake, will hold a majority stake, while ByteDance retains a minority share. This move is intended to mitigate fears of Chinese influence over TikTok's data and algorithm, which have been central to the national security debate.
TikTok U.S. Asset Sale Order
The executive order signed by Trump extends a deadline for ByteDance to sell its U.S. assets. This move aligns with a bipartisan law requiring such a divestiture to prevent a ban. The deal is valued at approximately $14 billion and involves significant American investment.
Oracle and Silver Lake are among the key stakeholders in the transaction. The restructuring aims to ensure that TikTok's algorithm and data management are controlled by U.S. entities.
This is intended to reduce the risk of Chinese surveillance or propaganda. Trump's decision to sign the order reflects a shift from his previous stance, where he sought to ban TikTok outright due to security concerns.
TikTok U.S. Restructuring Concerns
The restructuring of TikTok's U.S. operations has sparked discussions about political influence. Some of the new investors have ties to Trump. Notable figures such as Oracle co-founder Larry Ellison and media mogul Rupert Murdoch are involved.
“The article discusses concerns over TikTok's ownership and security, noting that some new investors have ties to former President Trump, raising fears of political influence.”
Their involvement raises questions about potential political motivations behind the deal. Despite these concerns, the primary focus remains on ensuring that TikTok's data and algorithm are managed independently of Chinese control. This issue is a key concern for U.S. lawmakers and security experts.
TikTok Deal and U.S.-China Relations
The deal's approval is contingent upon Chinese government consent, which remains uncertain. Trump claimed that Chinese President Xi Jinping agreed to the deal, but this has not been confirmed by Chinese authorities.
The ongoing negotiations highlight the complex interplay between U.S. national security interests and international trade relations, with TikTok serving as a focal point in the broader U.S.-China tensions. The restructuring is seen as a way to maintain TikTok's presence in the U.S. market while addressing security concerns.
TikTok's Influence on Youth News
TikTok's role as a major news source for young Americans adds another layer of complexity to the deal. With 43% of adults under 30 using the app for news, its influence on public opinion and political engagement is significant.
“Former President Trump, a major TikTok user who credits the platform for aiding his 2024 re-election campaign, emphasized that TikTok will be fully American-operated.”
This aspect of TikTok's operation has been a point of interest for both Trump and Biden, as they recognize the platform's potential impact on voter engagement, particularly among younger demographics. The restructuring aims to preserve TikTok's functionality and appeal while ensuring compliance with U.S. security standards.
