President Donald Trump signed an executive order meant to finalise the sale of TikTok’s U.S. operations to a group of mostly American investors. The deal, however, is far from complete. While it represents a procedural milestone, lingering questions about regulatory approval, control of TikTok’s powerful algorithm, and potential political influence hover in the ether.
What’s Happening & Why This Matters
The agreement stems from a bipartisan law passed last year requiring ByteDance, TikTok’s Chinese parent company, to divest at least 80% of its U.S. assets to non-Chinese investors or face a nationwide ban. The law took effect in January, but Trump has repeatedly extended enforcement deadlines, giving negotiators time to craft a sale that protects user data and addresses national security concerns.
On Thursday, Trump signed an order authorising the proposed deal, stating,
“I have determined that the proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security.”
The Key Players and Stakes
The new entity, TikTok U.S., will be valued at $14 billion, significantly lower than previous estimates of $20 billion to $100 billion, depending on whether TikTok’s algorithm is included in the valuation. The proposed ownership group includes:
- Oracle, overseeing data privacy and security.
- Silver Lake, a private equity powerhouse.
- Michael Dell and Fox Corporation, led by Lachlan Murdoch, as strategic investors.
- MGX, an Abu Dhabi fund chaired by Sheikh Tahnoon bin Zayed Al Nahyan, which will hold a 15% stake and a seat on the board.
Collectively, U.S.-based investors will control 65% of the new company. ByteDance will retain no more than 19.9%, ensuring the platform is “American-operated all the way,” as Trump declared.
JD Vance, the U.S. Vice President, stressed the importance of this structure, saying:
“Americans can use TikTok with more confidence because their data will be secure and not weaponized against our citizens.”
Algorithm at the Centre of the Fight
The algorithm, TikTok’s secret sauce, remains a sticking point. China has strict export controls over such technologies and may push for ByteDance to license the algorithm to the U.S. joint venture rather than sell it outright. This delicate issue will require additional negotiations and approvals from Beijing.
Trump jokingly remarked that he’d love TikTok’s algorithm to be “100% MAGA,” though he quickly reassured the public that the platform will treat all perspectives fairly. The remark underscored growing concerns about political influence over content distribution, especially with investors tied to Trump himself.
Global Political Dimensions
This deal plays a role far beyond tech and social media. Analysts believe Chinese officials are using TikTok as a bargaining chip to secure concessions in broader trade negotiations. Trump’s direct talks with Chinese President Xi Jinping have added a layer of geopolitical intrigue, with the leaders expected to meet at the APEC Summit in South Korea next month.
The involvement of Abu Dhabi’s MGX adds an international twist, cementing TikTok as a truly global platform with stakeholders from multiple regions. The pairing bolsters relationships with Middle Eastern partners while also inviting scrutiny over foreign influence in U.S. platforms.
The Bumpy Road to Come
The White House confirmed that Trump’s order grants 120 additional days for regulatory approvals and paperwork to be completed. During the interval, ByteDance must sign formal agreements with the new investors. American users may eventually need to download a separate U.S. version of TikTok, but that detail remains undecided.
While Trump expressed confidence the deal would progress smoothly, Beijing has yet to publicly confirm Xi’s support. Without China’s cooperation, especially on algorithm export rules, the deal could stall or face last-minute changes.
For TikTok’s 170 million American users, the stakes are enormous. The app’s future hinges on whether it can operate securely under American oversight without losing the global creative energy that made it a cultural force.
TF Summary: What’s Next
The TikTok deal represents a sophisticated dance between national security, global politics, and digital innovation. While Trump’s executive order sets the stage, many hurdles remain. The battle over TikTok’s algorithm, final investor agreements, and regulatory approvals could stretch well into next year.
If successful, the deal may become a blueprint for future cross-border tech negotiations. If it fails, it could trigger a nationwide TikTok ban, restructuring the social media market overnight.
MY FORECAST: Beijing’s response can determine the final outcome. Expect months of negotiation, with the algorithm issue proving the ultimate test. Will ikTok remains a global platform or becomes a U.S.-centric app? Buckle up and stay tuned!
— Text-to-Speech (TTS) provided by gspeech