Washington (Economy India): In a major development, US President Donald Trump has approved the long-pending deal for Chinese firm ByteDance to sell TikTok’s American business for $14 billion (₹1.24 lakh crore). The decision marks a turning point in the ongoing tech and trade tensions between Washington and Beijing.
120-Day Deadline to Complete the Deal
As per Trump’s executive order signed at the White House, ByteDance has been given 120 days to finalize the sale or face a complete ban in the United States. This marks the fifth extension of the deadline, with the final date now expected in January.
“This agreement fulfills the 2024 law requiring ByteDance to either divest TikTok’s US operations or exit the American market,” Trump said, addressing reporters in the Oval Office. He further revealed that Chinese President Xi Jinping has “green-lighted” the deal during recent discussions.
ByteDance Stake Reduced Below 20%
Under the new arrangement, TikTok’s US operations will be spun off into a new company with majority ownership resting in the hands of American investors. ByteDance’s stake will fall below 20% to comply with national security guidelines. The move also allows Trump to claim success on his 2024 campaign promise of reducing Chinese influence in US tech.
Oracle Gets Data Security Responsibility
Oracle Corp will oversee data security for American users. The company will store TikTok’s data on its cloud platform and ensure that its recommendation algorithm remains free from foreign interference.
According to US officials, the new TikTok entity will license ByteDance’s algorithm under Oracle’s supervision and rebuild it independently to guarantee data integrity and transparency.
Investors and Valuation Questions Remain
While Oracle, Silver Lake Management, and Abu Dhabi’s MGX have shown interest in investing and taking board seats, the final investor group is still under negotiation.
JD Vance, the US Vice President, who played a key role in shaping the deal, estimated the valuation of the new company at around $14 billion, though final figures may shift depending on investor participation.
China Yet to Confirm Approval
Despite Trump’s announcement, China has not officially confirmed its consent. The Chinese Embassy in Washington reiterated that the US must “provide an open, fair, and non-discriminatory environment for Chinese investors.”
Legal Battles and Deadlines
Previously, the Biden administration had ordered ByteDance to either sell TikTok to a US company or face a ban. ByteDance had challenged the order in court, but after Trump’s return to power, the administration pushed for a resolution instead of confrontation.
The Supreme Court had temporarily halted the ban, giving ByteDance time to find a US buyer. Now, with Trump’s backing, the TikTok deal is on track, though legal and regulatory hurdles still remain.
What Lies Ahead?
If finalized, the deal will create a fully American-controlled TikTok with tighter data security measures and reduced Chinese ownership. This may ease US-China tensions in the short term but also sets a precedent for how Washington handles foreign tech firms operating in sensitive markets.
(Economy India)
