A new deal is set to give Trump’s allies control over TikTok, with the app’s Chinese owner ByteDance reducing its stake to 20%.
The move comes after a law was passed under President Joe Biden forcing ByteDance to sell its US operations or face a ban.
The deal, valued at around $14 billion, would put control of TikTok in the hands of Trump’s allies, including investors Larry Ellison, founder of Oracle, Michael Dell, tech investor, Rupert Murdoch, media tycoon, Silver Lake Management, investment firm, and Andreessen Horowitz, Silicon Valley powerhouse.
According to Trump, the proposed divestiture would allow Americans to continue using TikTok while protecting national security. “If I could make it 100% MAGA I would, but it’s not going to work out that way unfortunately,” Trump said. He added that every group, every philosophy, and every policy would be treated fairly.
The transaction is expected to be completed by January 23, following a 120-day enforcement delay. Trump said President Xi Jinping gave his green light for the deal in a phone call last week.
The deal has sparked concerns about potential implications for TikTok’s users and the app’s content moderation policies. Despite being controlled by Trump’s allies, Trump insisted that the app would not toe any political line.
TikTok has around 170 million American users, and the new deal would ensure the app continues to operate in the US with a new ownership structure. As Trump noted, the goal is to protect national security while allowing Americans to continue using the app.
