WASHINGTON: Donald Trump signed an executive order outlining a proposed deal for a United States version of TikTok that reduces Chinese ownership to 20% and places control with the president’s allies.
At a White House ceremony, Trump announced the app would be managed by “highly sophisticated” investors including Oracle founder Larry Ellison, tech investor Michael Dell, and media tycoon Rupert Murdoch.
Investment firm Silver Lake Management and Silicon Valley powerhouse Andreessen Horowitz are also expected to participate in the arrangement.
“The proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security,“ Trump stated in the order affecting TikTok’s approximately 170 million American users.
The listed investors are all Trump allies, but he insisted the platform would maintain political neutrality.
“If I could make it 100% MAGA I would, but it’s not going to work out that way unfortunately. No… every group, every philosophy, every policy, will be treated very fairly,“ Trump told reporters.
The president confirmed the US TikTok version would utilise a domestically developed model of the app’s prized algorithm, often called its “secret sauce” for rapid global growth.
A White House official said the algorithm would be “continuously monitored” to ensure it is “not being unduly influenced.”
This new TikTok structure responds to a law passed under Joe Biden that forced Chinese owner ByteDance to sell its US operations or face a ban in its largest market.
US policymakers, including Trump during his first term, have warned China could use TikTok to collect American data or exert influence through its advanced algorithm.
Trump has repeatedly delayed enforcement through executive orders, most recently extending the deadline until December 16, 2025.
Thursday’s order granted a further 120-day enforcement delay, setting a new completion deadline of January 23.
Vice President JD Vance, who led the team finding a TikTok solution, said the US entity would be valued around $14 billion, though investors would ultimately determine the price.
When asked if Chinese authorities approved the deal, Trump said President Xi Jinping gave his green light during a phone call last week.
“(I have) great respect for President Xi, and I very much appreciate that he approved the deal, because to get it done properly, we really needed the support of China,“ he said.
TikTok did not respond to requests for comment, and Beijing has remained largely silent on any potential agreement.
After the Trump-Xi call, state broadcaster CCTV reported Xi emphasised China supports market-based negotiations that comply with Chinese laws. – AFP