The short-form video app TikTok’s divestment plan has been laid out in an executive order that US President Donald Trump has signed. The organization’s new investors, including Oracle, will now have control of its US assets.
The Oval Office signed the order on Thursday, which specifies a 120-day window for the divestment process.
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To avoid a ban, China-based ByteDance must sell its US assets in order to satisfy a law that requires it to do so.
Trump has delayed the sale deadline four times in February, April, June, and the previous week to make sure the popular short-form video app isn’t banned. The law, which was passed by Congress, set a January deadline for the sale.
While signing the executive order at the Oval Office, Vice President JD Vance stated that there was some resistance on the Chinese side, but the main goal was to keep TikTok operational while also making sure that we adhered to the law’s requirements for protecting Americans’ data privacy.
The president confirmed that Oracle is an investor and that media mogul Rupert Murdoch and tech billionaire Michael Dell would be investors without providing any details about their role or extent of involvement. Other than that, he stated that the data of US users would be controlled by US investors. The deal was valued at about $14 billion, according to Vedance, which is the first time a value has been assigned to it.
Investors are looming.
A group of three investors, including Oracle, MGX, and Silver Lake, will jointly own roughly 50% of TikTok US, according to a source with knowledge of the deal, according to a Reuters news agency.
According to sources, CNBC reported earlier on Thursday that TikTok US’s three investors would collectively own 45 percent of the company. According to Bloomberg News Agency, each investor would own a 15% stake in the business.
In order to meet the requirements of the 2024 law, ByteDance would hold less than 20% of TikTok US.
Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and the brother of President Mohamed bin Zayed Al Nahyan, owns MGX, an investment firm for artificial intelligence.
In the days to come, the White House said it would release the full investor list.
According to experts who spoke to Al Jazeera earlier this week, Oracle’s Larry Ellison’s involvement may skew the content to fit Trump’s preferred point of view. Trump has a significant ally in Elliott.
The White House previously claimed that this viewpoint is “utterly delusional” in an interview with Al Jazeera.
Source: Aljazeera
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