Trump Approves TikTok-Oracle Deal to Avoid US Ban
▼ Summary
– President Trump signed an executive order approving a deal that prevents a nationwide TikTok ban and values its US operations at $14 billion.
– The deal gives a 45% stake in TikTok’s US company to Oracle, Silver Lake, and MGX, while ByteDance investors retain a 35% stake.
– President Trump stated he spoke with China’s President Xi Jinping about the deal and that all content on the platform would be treated fairly.
– The Trump administration repeatedly extended the deadline for TikTok to divest from its Chinese parent company as negotiations continued.
– Trump’s stance on TikTok softened, partly due to his popularity on the app and potential backlash from young voters, moving away from a full sale.
President Donald Trump has formally endorsed an arrangement for TikTok’s American operations, effectively preventing the social media platform from facing a prohibition in the United States. The agreement, which values TikTok’s U.S. business at an estimated $14 billion, transfers control to a consortium of U.S.-based firms. While the specific executive order has not yet been publicly released, the President’s approval signals a significant de-escalation in the long-running dispute over the app’s Chinese ownership.
During a press briefing, Trump mentioned a conversation with Chinese President Xi Jinping, stating, “I spoke with President Xi, we had a good talk. I told him what we were doing, and he said, ‘Go ahead with it.'” According to financial reports, the new ownership structure will see Oracle, Silver Lake, and the Abu Dhabi-based MGX collectively acquire a 45 percent stake in the U.S. entity. Investors from ByteDance, TikTok’s Beijing-based parent company, will retain a 35 percent share. A critical unresolved question is whether the deal involves the transfer of ByteDance’s core algorithm or if it will be licensed to the new U.S. operations.
When questioned about potential political bias on the platform, Trump responded with characteristic candor. “If I could make it 100 percent MAGA, I would. But it’s not going to work out that way, unfortunately,” he said, adding that all groups and philosophies would be treated fairly. The path to this agreement has been marked by repeated delays. The administration has pushed back the deadline for TikTok to sever ties with its Chinese parent multiple times as complex negotiations continued. Just last week, Trump expressed confidence that a deal was imminent, a sentiment echoed by White House officials.
This development represents a notable shift from Trump’s initial hardline position. He was the first to pursue a ban on TikTok in 2020, citing national security concerns that the app could be exploited for espionage or propaganda by the Chinese government, a worry that later garnered bipartisan support and led to legislation. However, the President’s stance appears to have softened, influenced in part by his own popularity on the platform and the potential for alienating a large base of young users. Earlier this year, he publicly questioned the severity of the threat, pondering whether China’s primary interest was truly “spying on young kids watching crazy videos.” The final details of the arrangement are still emerging.
(Source: The Verge)
