President Donald Trump is expected to declare this week that a deal to divest TikTok’s US operations from its Chinese owner, ByteDance, fulfills the requirements of a 024 law. A White House official announced Monday that the agreement involves significant US investment from Oracle, Silver Lake, and other prominent investors, including media mogul Lachlan Murdoch and business leaders Larry Ellison and Mic el Dell. The official emphasized that ByteDance’s ownership stake will be less than 20%, ensuring substantial American control over TikTok’s US operations. The full list of investors remains undisclosed, but the official hinted at the involvement of several well-known entities.
A key component of the agreement involves storing all US user data on Oracle’s US-based cloud infrastructure, addressing crucial national security concerns. The White House is confident that China has approved the deal and doesn’t intend to engage in further negotiations with Beijing regarding its specifics, though additional paperwork is pending from both sides. The Chinese embassy in Washington responded with a statement expressing its hope for a commercially viable solution compliant with both countries’ relations. The deal is expected to value TikTok’s US assets in the “many billions of dollars.”
The US government will not hold a board seat or receive a golden share in the newly formed entity, and the question of government payments as a condition of approval remains unclear. The executive order signed by President Trump will include a 120-day enforcement pause to allow investors and ByteDance to finalize the agreement. This deal prevents the potential ban of TikTok, a hugely popular short-video platform with 170 million US users, which Congress mandated by January 2025 if US assets were not divested.
President Trump’s decision marks a significant development in the ongoing trade tensions between the US and China. The agreement represents a rare breakthrough in months of negotiations, offering a potential path to de-escalation in the broader trade conflict that has significantly impacted global markets. The administration’s move prioritizes the preservation of TikTok’s US operations while mitigating concerns regarding data security and Chinese influence.
