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      America 24 posted an update

      2 months ago

      President Donald Trump signed an executive order on September 25, 2025, approving a proposed divestiture of TikTok’s U.S. operations to a coalition of American and global investors, valuing the new joint-venture company at approximately $14 billion. The move complies with a 2024 federal law mandating ByteDance, TikTok’s Chinese parent company, to relinquish control or face a nationwide ban, addressing longstanding national security concerns over data privacy and potential Chinese government influence. Under the deal, ByteDance will retain less than 20% ownership, ensuring majority American control, while the platform continues operating without interruption. Trump emphasized the involvement of high-profile investors including Oracle co-founder Larry Ellison, Dell Technologies CEO Michael Dell, and media mogul Rupert Murdoch, describing the entity as “American-operated all the way” to safeguard user data and content moderation. The valuation, announced by Vice President JD Vance, has sparked debate as it falls significantly below analyst estimates of $30-40 billion for TikTok’s U.S. business, raising questions about the methodology and whether ByteDance’s proprietary algorithm will remain under Chinese influence. Trump claimed discussions with Chinese President Xi Jinping secured approval, though Beijing has not publicly confirmed details. Negotiators now have until mid-January 2026 to finalize terms, with equity contributions expected from ByteDance’s existing investors like General Atlantic and Sequoia Capital. This resolution averts an imminent shutdown, preserving access for over 170 million U.S. users while marking a pivotal shift in U.S.-China tech relations.

      • President Donald Trump signed an executive order approving a $14 billion deal for TikTok’s US operations, involving a coalition of American investors and the Abu Dhabi royal family, amid ongoing national security concerns over ByteDance’s Chinese ownership. The agreement, finalized after repeated deadline extensions to avert a ban, grants majority control to US entities while allowing ByteDance to retain a 19.9% stake. Key players include Oracle founder Larry Ellison, Silver Lake private equity, Dell CEO Michael Dell, Rupert Murdoch’s Fox, and Abu Dhabi’s MGX—chaired by Sheikh Tahnoon bin Zayed Al Nahyan—which will secure a 15% stake and a board seat, collectively holding about 45% with American firms owning over 65% overall. Trump hailed the investors as “highly sophisticated” and emphasized that the platform will be “American-operated all the way,” complying with a 2024 congressional law mandating divestiture or shutdown.The valuation has drawn scrutiny for being far below ByteDance’s $330 billion overall worth and analyst estimates for the US arm, raising questions about data security and potential Chinese influence despite assurances. Vice President JD Vance touted the deal as enhancing user confidence, stating it ensures “their data is going to be secure and it’s not going to be used as a propaganda weapon,” though China’s approval remains uncertain—Trump claimed a positive discussion with President Xi Jinping, but Vance noted “some resistance on the Chinese side.” The 120-day window to close the transaction underscores the geopolitical tensions in US-China tech relations, potentially reshaping global social media dynamics while preserving access for TikTok’s 170 million American users.

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