President Donald Trump has signed an executive order acknowledging a framework for a deal between ByteDance and the United States regarding TikTok’s US operations. This deal, valued at $14 billion, ensures that TikTok will be under the control of US-based companies.
During a briefing, Trump mentioned a conversation with Chinese President Xi Jinping, stating that he communicated the intentions behind the deal and received Xi’s agreement to proceed. The executive order specifies that TikTok will be majority-owned and controlled by US entities. Additionally, a new board of directors will be established to ensure compliance with regulations aimed at safeguarding American data and national security. The US management will also oversee TikTok’s recommendation algorithm, code, and content moderation.
According to reports, stakeholders Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively acquire a 45 percent stake in TikTok’s US operations, while investors from ByteDance will retain a 35 percent stake. Trump was queried about whether TikTok’s algorithm would prioritize MAGA-related content, to which he responded that while he would prefer it to favor that perspective, implementation would not fully adhere to that preference. He asserted that all groups and ideologies would receive fair treatment.
Since taking office, Trump has repeatedly delayed the deadline for TikTok to separate from its Chinese parent company as negotiations have continued. Recently, he indicated progress in discussions with China, and White House Press Secretary Karoline Leavitt expressed confidence in reaching a finalized agreement.
A day before the latest enforcement deadline set for September 16, Trump announced a fourth extension in the ban while the US finalized its arrangements. Treasury Secretary Scott Bessent remarked that a framework deal had been established between the US and China, suggesting that significant interest from large companies was evident.
The push for a TikTok ban originated from Trump in 2020 and gained further bipartisan backing under President Biden, culminating in a 2024 divest-or-ban law. Concerns about potential Chinese government surveillance and propaganda linked to the app were central to the discussions, although Trump’s position has softened over time, particularly considering his popularity on the platform among younger voters.
Source: https://www.theverge.com/news/640745/tiktok-deal-trump-us-china-bytedance