President Donald Trump signed an executive order on Thursday approving a proposed deal that would allow TikTok to continue operating in the United States. The deal is not final until China agrees to it — but details of the new operation are taking shape.
CNBC reports that President Donald Trump signed an executive order on Thursday, giving his approval to a proposed deal that would keep the platform alive in the country. The deal, which still requires China’s approval, comes as a result of a national security law that mandated China’s ByteDance to sell TikTok’s U.S. operations or face an effective ban.
Under the terms of the agreement, a new joint-venture company will be formed to oversee TikTok’s U.S. business, with ByteDance holding less than a 20 percent stake in the entity. Vice President JD Vance stated that the transaction values the business at $14 billion, although no purchase price was provided.
The main investors in TikTok’s U.S. business will be tech giant Oracle, private equity firm Silver Lake, and the Abu Dhabi-based MGX investment fund, collectively controlling a roughly 45 percent stake in the new company. ByteDance investors and new holders will own the remaining 35 percent, as reported by CNBC’s David Faber.
Oracle will be responsible for overseeing the app’s security operations and providing cloud computing services for the new TikTok U.S. firm. President Trump emphasized the American ownership of the new entity, stating, “It’s owned by Americans, and very sophisticated Americans. This is going to be American operated all the way.”
ByteDance investors, including General Atlantic, Susquehanna, and Sequoia, are expected to contribute equity in the new TikTok U.S. entity. While ByteDance was reportedly valued at $330 billion last month, analysts have previously estimated TikTok’s U.S. operations to be worth between $30 billion and $35 billion.
While ByteDance representatives were not present at the signing, and the company has not acknowledged that a transaction is taking place, President Trump stated that Chinese President Xi Jinping gave the deal the go-ahead. Vice President Vance noted that the Chinese government put up some resistance before the agreement was reached.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
