U.S. entities identified as potential TikTok buyers
In a significant turn of events, President Donald Trump has signed an executive order on September 16, delaying TikTok's U.S. block for 90 days until December 16. This decision comes following a deal reached during two-day China-U.S. talks in Madrid, as announced by Trump on September 15.
The deal involves the creation of a U.S. version of the popular video-sharing app, TikTok. Three American companies, Oracle, Silver Lake, and Andreessen Horowitz, will have a significant stake in this new venture. Together, they lead an investor consortium that will control 80% of TikTok's U.S. business, while ByteDance, the Chinese company behind TikTok, will retain a 20% minority stake.
Oracle will not only be a stakeholder but will also continue to provide cloud services for the app. The deal's value and the size of each of the three investors' stakes remain undisclosed at this time.
A government-appointed individual will join the board of the new company, and the board will have a majority of seats held by Americans. This is the fourth extension given to TikTok, following the U.S. Supreme Court's ruling that the ban on TikTok in the country was legal.
The White House has been cautious about releasing details, calling any unofficial information about the TikTok deal speculation. A phone call between U.S. President Donald Trump and Chinese President Xi Jinping is scheduled for September 19 to discuss further details.
It was confirmed by then-U.S. Treasury Secretary Steven Mnuchin that the new company will have a board of directors, and American investors will receive approximately 80% of the shares. The deal marks the first step towards resolving the long-standing tensions between the U.S. and China over TikTok's operations in the U.S.
The deal's approval by Joe Biden, who signed such a law in April 2024, will be crucial to its finalisation. The exact details and implications of the deal are yet to be fully understood, but it promises to bring clarity to TikTok's future in the U.S. and potentially pave the way for similar collaborations between American and Chinese tech companies.
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