By Emmanuel Kwada
President Donald Trump signed an executive order on Thursday greenlighting a high-stakes consortium of his political allies to seize control of TikTok’s U.S. operations, slashing Chinese ownership to under 20% and averting a nationwide ban on the app beloved by 170 million Americans.
The order, unveiled during a White House ceremony, declares the proposed divestiture a “qualified” solution under a bipartisan 2024 law that mandated ByteDance – TikTok’s Beijing-based parent – to offload its U.S. assets or face shutdown by January 2025.
Trump, who has repeatedly delayed enforcement through prior orders, extended the deadline by another 120 days to January 23, buying time to finalize the transaction.
”This deal saves TikTok from going dark while putting America first – no more foreign adversaries spying on our kids’ dance videos,” Trump quipped to reporters, emphasizing that the new U.S. entity would be helmed by “highly sophisticated” investors, all longtime allies.
This deal saves TikTok from going dark while putting America first – no more foreign adversaries spying on our kids’ dance videos
The lineup features Oracle founder Larry Ellison, Dell Technologies’ Michael Dell, media mogul Rupert Murdoch, Silver Lake Management, and Silicon Valley heavyweight Andreessen Horowitz. Vice President JD Vance, the former venture capitalist who spearheaded negotiations, pegged the venture’s valuation at around $14 billion, though he noted final pricing rests with the investors.
At the heart of the agreement is TikTok’s vaunted recommendation algorithm – the “secret sauce” behind its explosive growth – which will be licensed to the American-led company and subjected to ongoing U.S. oversight to prevent undue Chinese influence.
A White House official stressed that the tech would be “continuously monitored” to safeguard user data and curb potential propaganda risks, echoing long-standing U.S. fears that Beijing could exploit the platform for espionage or manipulation.
I have great respect for President Xi, and I very much appreciate that he approved the deal
Trump revealed that Chinese President Xi Jinping personally endorsed the framework during a phone call last week, crediting the rapport for smoothing over regulatory hurdles in China.
“I have great respect for President Xi, and I very much appreciate that he approved the deal,” Trump said. Beijing, however, tempered enthusiasm on Friday, with Foreign Ministry spokesman Guo Jiakun urging an “open, fair, and non-discriminatory” environment for Chinese firms in the U.S., while state media CCTV highlighted Xi’s push for market-driven talks compliant with Chinese law.
The arrangement stems from a law enacted under President Joe Biden, which Trump has navigated with a series of extensions – the latest pushing back from a December 16 deadline. Trump, who targeted TikTok during his first term, insisted the app would remain apolitical: “If I could make it 100 percent MAGA, I would, but it’s not going to work out that way. Every group, every philosophy, every policy will be treated very fairly.”
TikTok, which boasts users comprising nearly half of the U.S. population, has not yet commented on the deal. The White House projects the setup will inject $178 billion into the U.S. economy over four years, sustaining jobs and ad revenue for businesses reliant on the platform.
Critics, including some Democrats, question whether the algorithm’s licensing fully severs Chinese ties, while legal experts note unresolved details on ByteDance’s lingering influence.
As the 120-day clock ticks, all eyes are on whether this “art of the deal” truly neutralizes security threats – or merely remixes TikTok under a red, white, and blue filter.
-AFP
