JAKARTA - US President Donald Trump is expected to agree to a deal for TikTok by executive order, which states that the deal meets legal requirements this week. This was first reported by the Wall Street Journal on Monday, September 22, citing a senior White House official.
The move will be the culmination of a lengthy discussion between the US and China highlighting broader trade negotiations, as well as solidifying schedules for long-awaited deals to keep this popular short video app operating in the US.
Trump stated that the US and China have made progress in an agreement requiring TikTok assets in the US to be transferred to American owners of Chinese company ByteDance. The deal will also establish that the TikTok algorithm "is secured, re-trained, and operated in the United States beyond ByteDance's control."
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On Sunday, September 21, Trump mentioned that Lachlanmen's media magnates and business leaders Larry Ellison and Michael Dell will be involved as US investors in a proposed deal to keep TikTok operating in the United States.
Under the agreement expected, the majority of TikTok assets in the US will be owned by American investors and operated in the US by board of directors who have national security credentials and cybersecurity.
Existing investors and a group of new US investors, including private equity firm Silver Lake and cloud computing company Oracle, will jointly own about 80% of the company, according to a Wall Street Journal report on Monday.
Reuters reports that the deal requires all American user data stored in the US cloud computing infrastructure managed by Oracle. A new investor consortium, including Silver Lake and Oracle, will have about half of the new entities formed to run TikTok in the US, according to the WSJ.
Existing investors, such as trading firm Susquehanna International, will hold about 30% of the shares, according to the report. Magnat media Lachlan Badminton, which leads Fox Corp, will also be involved in a proposed deal to keep TikTok operating in the US. Meanwhile, ByteDance's stake, TikTok's parent company, will decline below 20%.
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