The latest twist in the continuing TikTok drama here in the States was a big one. The executive order signed by President Donald Trump gives American investors the exclusive rights to buy TikTok US, assuming any deal happens before the deadline of 15 September. This pact will ensure that U.S. firms only control a little more than 65% of the platform. This change is about to alleviate worries over data privacy and national security.
In a bold stroke, Larry Ellison’s Oracle is partnering with private equity firm Silver Lake and Abu Dhabi’s MGX. Combined, they’ll control nearly 45% of TikTok US. The agreement has been pegged at around $14 billion. Trump stated at the time that by making such American investors the key players, they would guarantee the platform remains “American-operated all the way.”
Trump’s administration has twice extended deadlines for finalizing the sale or otherwise closing TikTok US down. He noted that there was some resistance on the Chinese side regarding the deal, expressed optimism following discussions with Chinese President Xi Jinping.
“I had a good talk with Xi Jinping regarding TikTok. He gave us the go-ahead for the TikTok deal.” – Donald Trump
Needless to say, despite this approval, China has not made any public commitments about what it will do in relation to this agreement. The uncertainty injects a new layer of complication into the deal as it continues through the process towards finalization.
Trump’s executive order gives a 120-day deadline to work out the details. In the interim, American companies will assume control over the platform’s operations. User confidence in TikTok is strengthened through this multi-pronged approach. Senator JD Vance reminds us how vital it is that we protect all Americans’ data by safeguarding their privacy.
“But the fundamental thing that we wanted to accomplish is that we wanted to keep TikTok operating but we wanted to make sure that [it] protected Americans’ data privacy as required by law.” – JD Vance
American investors in this joint venture are known for their sophistication and expertise in technology. Trump remarked on their qualifications, stating,
“We have American investors taking it over, running it [who are] highly sophisticated, including Larry Ellison. Great investors, the biggest. They don’t get bigger.” – Donald Trump
Vance said that this deal represents the first time Americans would be allowed to engage with TikTok in such a way.
“This deal really does mean that Americans can use TikTok, but actually use it with more confidence than in the past. Because their data is going to be secure and it’s not going to be used as a propaganda weapon against our fellow citizens.” – Donald Trump