TikTok Deal Nears Completion as Trump Prepares to Sign Executive Order
A deal to resolve US national security concerns surrounding TikTok is on the cusp of finalization, with former Treasury Secretary steven Mnuchin stating an agreement is expected to be signed before December. The proposed arrangement involves Oracle and Walmart taking a 20% stake in a new US-based company, TikTok Global, intended to address fears over data security and potential Chinese government influence.
The impending agreement follows months of escalating tensions between the US and China, triggered by the Trump management’s concerns that TikTok’s parent company, ByteDance, could pose a threat to national security through its collection of user data and potential censorship. The deal’s structure aims to ensure a “full divestiture,” satisfying US demands.
An executive order,expected to be signed this week,will formally outline the deal’s structure and certify its legality under US law. Key components reportedly include a seven-member board controlled by Americans and a lease arrangement granting TikTok’s US owners access to the app’s proprietary algorithm, according to The Details. A 120-day enforcement pause is also anticipated to allow ByteDance and investors to finalize the agreement.
The US government has expressed confidence that China has approved the deal and does not anticipate further negotiations with Beijing. However, a White House official acknowledged that additional paperwork is still required from both sides for final approval.
China has yet to officially confirm its approval. ByteDance has stated it is engaged in discussions with the US government to find a resolution, but any agreement “will be subject to approval under Chinese law.”
