US President Donald Trump signed an executive order on September 25, according to which the American division of TikTok will be sold to US and international investors from China's ByteDance. The deal is designed to meet national security requirements by 2024.
The newly created TikTok US company will operate under American control and is expected to be worth approximately $14 billion. Fifty % of the company will be acquired by Oracle and Silver Lake, approximately 30% by ByteDance's American shareholders, and ByteDance will retain a stake of less than 20%.
American security partners will control TikTok's algorithm, and its management will be transferred to a new joint venture.
In a conversation with Chinese President Xi Jinping, Trump revealed the details of the deal, and in response, Xi agreed to continue the process. The Chinese Embassy in Washington has not yet responded.
