US Ownership of TikTok: Trump Signs Order to Facilitate Sale
US President Donald Trump has signed an executive order that facilitates the sale of popular video-sharing app TikTok to a team of American investors. The controversial move follows months of deliberation and angst in Washington over the app's potential security implications, with the Trump administration asserting that the Chinese-owned platform is a national security threat.
The Background
The Committee on Foreign Investment in the U.S. (CFIUS) had unanimously determined in 2020 that TikTok is akin to spyware, potentially controlled by the Chinese Communist Party (CCP). In response, Congress passed legislation in 2024 requiring TikTok to be sold to American owners or face a total ban. The Trump administration had until December 16 to enforce the law while efforts were underway to line up American investors and gain Beijing's approval.
The Deal
The deal, involving major investors such as Dell and Murdoch, separates the app from its Chinese owner ByteDance, allowing US investors to take an 80% stake. However, critics argue that the Trump administration's 'framework deal' falls short of the legal requirement of a clean break. They claim that the proposal allows ByteDance to retain a seat on the board and lease its algorithm to American investors, which they argue is essentially a capitulation since licensing is not ownership and monitoring is not control.
The Implications
This agreement has sparked widespread debate about potential changes to the platform's algorithm under US leadership. Experts are raising questions about what this could mean for the app's content and user experience. Some also express concerns about the potential dominance of the investors involved in the deal, such as Rupert Murdoch and his son Lachlan, Larry Ellison of Oracle, and Michael Dell, CEO of Dell Technologies.
As President Trump put it, We have very good controls,
adding that Chinese President Xi Jinping had given him the go ahead
on the deal. However, Beijing has not yet commented on the matter, adding a layer of uncertainty to the situation.
Current Status
The new deal values TikTok at $14 billion and allows the app to continue operating in the United States. The executive order also outlines that the app will be operated in the US by a board of directors with national security and cybersecurity credentials, and subject to strict rules to protect Americans’ data and our national security,
according to a document published by the White House.
The transition of TikTok into American hands concludes months of negotiations, agreements, and strategic moves that have positioned the app at the center of a geopolitical controversy involving China, the United States, and Europe. However, the final outcome of this deal, particularly its impact on the platform's content and user experience, remains to be seen.