U.S. President Donald Trump signed an order last Thursday, stating that his proposal to sell TikTok’s U.S. operations to American and global investors will comply with a 2024 regulation.
The new American company is estimated to be worth $14 billion, as stated by U.S. Vice President JD Vance. The White House did not provide details on the valuation process.
Trump postponed the enforcement of the law prohibiting the app until December 16, as part of attempts to secure the app’s assets in the US, engage investors from the US and other nations, and gain approval from the Chinese government.
Trump said that the deal would safeguard data from American users, with Oracle Corp. assisting in securing the algorithm in the U.S. version of the platform. He also mentioned that he had received approval from Chinese President Xi Jinping for the agreement.
Trump had a positive discussion with President Xi at the White House Oval Office, where they discussed TikTok and other matters, with President Xi expressing his support for TikTok.
Despite Trump’s attempts, the approval of the transaction remains uncertain as China has not made any public announcement regarding it.
The China Ministry of Foreign Affairs did not confirm Beijing’s approval after the meeting between Trump and Xi. Instead, it emphasized that any agreement should adhere to Chinese laws.
The buyer group’s composition is still pending official confirmation, but Oracle, Silver Lake, and Abu Dhabi-based investment firm MGX are in discussions to invest in a US-based TikTok version and secure board seats in the new entity.
ByteDance, the Chinese company that owns TikTok, would need to have less than 20% ownership of TikTokUS by 2024 to comply with the law. If ByteDance does not sell its US assets, TikTokUS will be shut down until January 2025.
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