The US and Chinese authorities have reached a final agreement on the sale of the American version of TikTok, US Treasury Secretary Scott Besant reported.
The value of the transaction is estimated at $14 billion, and under the new structure, American and international investors will receive about 65% of the company's shares, while ByteDance and Chinese investors will have less than 20%. The executive order signed by Trump will transfer control of the application's algorithm to the new owners.
The fight over TikTok began back in 2020, when Trump threatened to ban the application in response to China's behavior during COVID-19. Congress later approved the ban on the application, but it was postponed several times as the administration sought a way to transfer ownership.
With this deal, Washington aims to strengthen American control over TikTok's data and security, reducing Beijing's influence over the application's functions.
