Trump approves $14B deal to keep TikTok alive in US
What's the story
President Donald Trump has signed an executive order approving the sale of TikTok's US operations to a group of American investors. The move is aimed at keeping the popular social media platform operational in the country. Vice President JD Vance said that the deal would value TikTok US at "around $14 billion."
Law suspension
Executive order suspends national security law for 120 days
The executive order signed by Trump suspends the enforcement of a national security law, passed with bipartisan support, for 120 days. The law required TikTok to divest its US business or face a ban in the country. The suspension will remain in place while the president's divestiture plan is executed.
Deal acknowledgment
ByteDance yet to acknowledge deal
While TikTok's parent company ByteDance has not publicly acknowledged the deal or executive order, it did say on September 19 that "it will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok US." Trump also revealed that Chinese President Xi Jinping had given his approval for the deal during their recent conversation.
Operational changes
Oracle to manage TikTok's US operations
The executive order also states that TikTok's US operations will form a new board of directors. ByteDance will hold less than 20% of the new entity. The app's recommendation algorithm, source code, and content moderation system in the US will be transferred to its new owners. Under the deal, Oracle will manage the app's security operations and provide computing services for TikTok US.
Algorithm control
Deal aims to ensure data privacy for US users
Vance assured that the new arrangement would ensure data privacy for US users. He said, "What this deal ensures is that the American entity and the American investors will actually control the algorithm." This move is aimed at preventing any foreign government from using TikTok as a propaganda tool.