Summary
- Trump administration and China near final TikTok deal this Thursday.
- Deal approves transfer of TikTok US operations to American investors.
- Expected valuation around $14 billion with majority US ownership.
In an attempt to defuse a trade war, President Donald Trump is traveling to South Korea to meet with Chinese President Xi Jinping.
In an interview with CBS's "Face the Nation" on Sunday, Treasury Secretary Scott Bessent stated that the two presidents will "consummate that transaction on Thursday in Korea."
The agreement, if it materializes, would put an end to months of speculation regarding the future of the well-known video-sharing website in the US.
TikTok was about to go black on the January deadline after a bill that would ban the app in the United States if it did not find a new owner in place of China's ByteDance was approved by Congress with broad bipartisan majorities and signed by President Joe Biden. It did for a few hours.
Trump continues to extend the date for a TikTok deal without a clear legal justification, issuing three more executive orders in the process.
The second occurred in April, when White House officials thought they were getting close to an agreement to spin off TikTok into a new business that would be owned by the United States. However, after China withdrew after Trump announced tariffs, the agreement fell through.
Trump said that the third, in June, and the second, in September, would enable TikTok to carry on with its business operations in the US while adhering to national security regulations.
Although the acquisition also needs China's permission, Trump's directive was intended to allow an American-led group of investors to purchase the app from China's ByteDance.
How would the deal affect TikTok’s U.S. operations and staff?
The power of TikTok's U.S. operations would transfer to an American-led common adventure, with a board generally composed of Americans. Oracle, along with other investors like Fox Corporation and private equity enterprises, will oversee TikTok’s U.S. stoner data and its core recommendation algorithm.
TikTok workers in the U.S. have expressed query about their unborn places, reporting a lack of clear communication on how the deal will affect their jobs, reporting structures, and stock options presently tied to ByteDance. As is common in combinations and accessions, there's concern about implicit layoffs or organizational changes, though no sanctioned plans have been barred.
The agreement allows TikTok to continue operating in the U.S. without a ban, furnishing further stability for staff and druggies.