TikTok Deal Nears Final Approval with Trump Executive Order.President Donald Trump is expected to approve the TikTok deal this week. He will use an executive order to finalize the agreement. This action follows months of intense negotiations between the US and China.The deal transfers TikTok’s American operations to US-based ownership. It aims to resolve national security concerns surrounding the popular video app. According to the Wall Street Journal, the President will declare the deal satisfies US law.
US Investors to Secure Majority Stake in New Entity
The agreement mandates a significant ownership change. TikTok’s US assets will be spun off from its Chinese parent company, ByteDance. A new board with security credentials will manage the American operations.A consortium of American investors will own about 80% of the new entity. As reported by Reuters, this group includes Oracle and private-equity firm Silver Lake. Existing US investors will retain a minority stake, reducing ByteDance’s share to below 20%.
Oracle to Host US User Data as Security Safeguard
A key part of the deal focuses on data security. All data on American TikTok users will be stored within the United States. Oracle’s cloud computing infrastructure will host this information to ensure its safety.The complex algorithm that powers TikTok’s “For You” feed will also be secured. It will be operated on US soil, separate from ByteDance’s control. This measure directly addresses concerns about potential foreign data access.President Trump confirmed several high-profile investors are involved. These include media mogul Lachlan Murdoch and business leaders Larry Ellison and Michael Dell. Their participation adds a layer of prominent US oversight to the new company.
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This week’s expected executive order will formally enact the TikTok deal and its stringent security provisions. The move concludes a high-stakes negotiation that captivated the tech and political worlds.
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What is the main goal of the TikTok deal?
The primary goal is to protect the data of American users. It moves TikTok’s US operations and data storage entirely under American control. This addresses national security concerns raised by the US government.
Which companies are involved in the new ownership?
Oracle and Silver Lake are leading the new investment group. Existing US investors like Susquehanna International will also hold a stake. ByteDance’s ownership will be reduced to a minority share.
What role will Oracle play in the new TikTok?
Oracle will host all US user data on its cloud servers. This keeps the information physically within the United States. The arrangement is a core part of the security agreement.
How will the TikTok algorithm be handled?
The algorithm will be secured and operated within the United States. It will function independently from ByteDance’s direct control. US officials will oversee its management for security.
Why was the US government concerned about TikTok?
Concerns centered on the app’s Chinese ownership. Officials feared user data could be accessed by the Chinese government. The new deal is designed to eliminate that risk.
Trusted Sources
Wall Street Journal, Reuters, Associated Press.
Meta Details
Meta Description: TikTok deal moves forward as Trump prepares an executive order for final approval. The agreement transfers US operations to American owners like Oracle.
Tags: TikTok deal, Donald Trump, executive order, ByteDance, Oracle, US China relations, social media news
Yoast Focus Keyphrase: TikTok deal
Slug: tiktok-deal-approval-executive-order
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