US President Donald Trump has signed an executive order that he says will allow TikTok to continue operating in the United States in a way he says meets national security concerns laid out in law.
Much is still unknown about the actual deal in the works, but Trump said that Chinese President Xi Jinping had approved it. Any major change to the popular video platform could have a huge impact on how Americans – particularly young adults and teenagers – consume information online.
TikTok’s new owners include many whose business or political interests are tied to Trump, including Oracle co-founder Larry Ellison and Rupert Murdoch, raising questions about whether political influence will be exerted onto the platform.
Trump has signed off on a new TikTok deal. Credit: Getty
The Chinese embassy in Washington didn’t immediately respond to an AP inquiry seeking confirmation that China has signed off on the proposed framework deal.
Under the terms of the deal that have so far been revealed by the White House, the app will be spun off into a new US joint venture owned by a consortium of American investors – including Oracle and investment firm Silver Lake Partners.
Though the details have yet to be finalised, the investment group’s total stake in the new venture would be about 80 per cent, while ByteDance was expected to have a 20 per cent, or smaller, stake in the entity.
The board running the new platform would be controlled by US investors. ByteDance would be represented by one person on the board, but that individual will be excluded from any security matters or related committees.
AP
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