Trump Signs $14 Billion TikTok US Deal
President Donald Trump signed an executive order paving the way for American investors to take over TikTok's US operations from ByteDance, valuing the company at approximately $14 billion. The deal was made to comply with a 2024 law requiring ByteDance to relinquish control or face a total ban in the US. Trump said he had received the green light directly from Chinese President Xi Jinping.
Under the new structure, ByteDance will own less than 20% of the shares, while US investors such as Oracle, Silver Lake, and MGX are in negotiations to acquire a stake and board seats. Oracle will also oversee the secure cloud storage of US user data and ensure TikTok's recommendation algorithm is not influenced by foreign parties.
However, many questions remain surrounding the transaction. The $14 billion valuation is far below previous estimates of $35–40 billion, raising doubts about TikTok's business potential and its content algorithm technology. The US Congress has also promised to scrutinize the deal in detail, particularly regarding the termination of ByteDance's control.
The agreement has a 120-day deadline, with a January 2026 deadline. If successful, this move will not only fulfill Trump's campaign promise but also hopefully ease US-China tensions over data security and technological dominance, although Beijing's full approval remains uncertain.
Source: Bloomberg.com
