TikTok, one of the world’s most popular social media apps, has avoided a ban in the United States after President Donald Trump approved a new deal that changes majority control to American investors. The decision, formalised through an executive order, values the company’s US business at around $14 billion and addresses concerns over data security and Chinese ownership. The arrangement still needs final clearance from Beijing but has been described by Trump as a “complete American operation.” Here are the five main takeaways.
Trump pushes $14 billion deal for US investors to buy TikTok: Story in 5 points
-Trump signs order to keep TikTok alive in the US: Donald Trump on Thursday approved a deal that prevents a ban on TikTok and allows its American arm to function under new ownership, according to CNBC. The order ensures compliance with a US national security law that requires ByteDance to step back from majority control of the app’s American operations.
-Oracle, Silver Lake and MGX to take charge: The new entity will see a consortium of Oracle, Silver Lake, and Abu Dhabi’s MGX fund emerging as key investors, together holding about 45 per cent of TikTok’s US operations. Another 35 per cent will be shared among ByteDance’s existing backers and new shareholders, while ByteDance itself will retain less than 20 per cent.
-Oracle to handle security and cloud role: Oracle will not just hold a stake but also take responsibility for data safety and cloud hosting. Trump pointed out that Oracle’s co-founder Larry Ellison is actively involved in the ownership group, stressing that the app would now be “run by Americans.”
-Questions over valuation: The reported deal values TikTok’s American business at around $14 billion, much lower than earlier analyst estimates of $30–35 billion. For context, ByteDance was valued at nearly $330 billion only last month. Interestingly, ByteDance has so far not issued a formal statement on the transaction, and no official purchase price has been disclosed.
-Deadline extended till December 16: The executive order also extends the timeline for ByteDance to complete the divestment process. Until December 16, US authorities will not enforce penalties under the national security law. Trump also claimed that Chinese President Xi Jinping has given his nod to the deal, though he admitted Beijing showed some initial resistance.
