President Trump signed an executive order Thursday approving a proposal that would keep TikTok available in the U.S., moving closer to ending the long-running saga over the popular social media app’s Chinese ownership.
The deal is intended to satisfy the requirements of a law passed last year that sought to force the app’s separation from its Beijing-based parent company, ByteDance, over national security concerns.
Under the terms of the deal, a new joint-venture company would oversee TikTok’s U.S. business, with ByteDance retaining less than a 20% stake.
“It’s owned by Americans, and very sophisticated Americans,” the president said in the Oval Office. “This is going to be American operated all the way.”
President Trump said he recently had a “good talk” with Chinese President Xi Jinping about the deal, which awaits Beijing’s approval.
“I told him what we were doing, and he said, ‘Go ahead with it,’” he told reporters.
The executive order says TikTok’s U.S. operations will establish a new board of directors and that the app’s powerful algorithm will be transferred to the control of its new owners.
Oracle will oversee the app’s security operations and provide computing services.
CNBC reported that Oracle, Silver Lake and an Abu Dhabi-based investment fund will take a 45% stake in the new U.S.-based entity, with ByteDance investors expected to contribute equity.
The president said media mogul Rupert Murdoch and tech executive Michael Dell were also involved as investors.
ByteDance is valued at around $330 billion, while its American operations were previously estimated to be worth upwards of $35 billion.
Vice President JD Vance said the new American TikTok would be valued around $14 billion.
Last week, President Trump signed an executive order delaying enforcement of the U.S. law until Dec. 16, the fourth such reprieve.
President Trump signed an executive order Thursday approving a proposal that would keep TikTok available in the U.S., moving closer to ending the long-running saga over the popular social media app’s Chinese ownership. The deal is intended to satisfy the requirements of a law passed last year that sought to force the app’s separation from its Beijing-based parent company, ByteDance, over national security concerns. Under the terms of the deal, a new joint-venture company would oversee TikTok’s U.S. business, with ByteDance retaining less than a 20% stake. “It’s owned by Americans, and very sophisticated Americans,” the president said in the Oval Office. “This is going to be American operated all the way.” President Trump said he recently had a “good talk” with Chinese President Xi Jinping about the deal, which awaits Beijing’s approval. “I told him what we were doing, and he said, ‘Go ahead with it,’” he told reporters. The executive order says TikTok’s U.S. operations will establish a new board of directors and that the app’s powerful algorithm will be transferred to the control of its new owners. Oracle will oversee the app’s security operations and provide computing services. CNBC reported that Oracle, Silver Lake and an Abu Dhabi-based investment fund will take a 45% stake in the new U.S.-based entity, with ByteDance investors expected to contribute equity. The president said media mogul Rupert Murdoch and tech executive Michael Dell were also involved as investors. ByteDance is valued at around $330 billion, while its American operations were previously estimated to be worth upwards of $35 billion. Vice President JD Vance said the new American TikTok would be valued around $14 billion. Last week, President Trump signed an executive order delaying enforcement of the U.S. law until Dec. 16, the fourth such reprieve. #trump#tiktok#cspan
