More details about the big deal to save TikTok in the US have leaked, with American investors set to control 80% of the new TikTok US business, which will be overseen by a board of directors dominated by Americans, including one member directly appointed by Donald Trump’s administration.
The revelations about the TikTok deal started to circulate as Trump again extended the deadline for TikTok’s current owner, China-based ByteDance, to sell the US side of the business.
It emerged on Monday that a framework had been agreed that would allow the Chinese government to approve ByteDance selling the majority of the TikTok US business to American investors.
Trump then told reporters yesterday, “we have a group of very big companies that want to buy it”. Getting a deal across the line that would allow TikTok to continue operating in the US was important, he then explained, because, “the kids want it so badly”.
“I had parents calling me up”, Trump continued. “They don’t want it for themselves, they want it for their kids. They say, if I don’t get it done, they are in big trouble with their kids”. At last, somebody is thinking about the children! Our TikTok-addled, radicalised, traumatised, digitally-burnt-out children. Phew!
US Congress last year passed a law saying that ByteDance must sell its US business or face a ban in the country over concerns that the Chinese government has access to TikTok user-data via its China-based owner. Trump has repeatedly extended the deadline for that sale to take place. The latest deadline was today, but it has now been extended to 16 Dec.
According to sources who spoke to CNN, the framework deal to sell TikTok US agreed on Monday more or less mirrors what was agreed with ByteDance back in April. However, the sale needs to be approved by the Chinese government, and Trump’s tariffs and trade war temporarily scuppered that.
Chinese officials now appear to be on board, with US Treasury Secretary Scott Bessent telling CNBC that it was Trump making it very clear to Chinese representatives that he was, in fact, willing to let “TikTok go dark” in the US that forced China’s hand. Good job they didn’t call his bluff, just think how much trouble all those American parents would be in with their TikTok-addled kids.
Among the investors involved on the US side are Oracle, Andreessen Horowitz and Silver Lake. Oracle – led by Trump ally Larry Ellison – has had a relationship with TikTok ever since Trump unsuccessfully tried to ban the app during his first presidency.
ByteDance formed an alliance with the US tech company in the hope it would allay the data security concerns of American politicians without a change in ownership. It didn’t, of course.
Even with the change of ownership, Oracle will need to reassure Congress that US user-data is definitely secure. Especially given reports that ByteDance will still entirely own, control and develop the all important TikTok algorithm, licensing it into the TikTok US business.
The final details of the big TikTok deal are meant to be agreed on a call between Trump and Chinese President Xi Jinping on Friday. We’ll see how much more information about the deal is then made public.
