Trump's Executive Order Secures American Control Of Tiktok
(MENAFN- The Rio Times) President Trump signed an executive order on September 25 requiring US investors to hold the majority stake in TikTok's American operations. The move addresses long-standing national security concerns and reshapes the platform's future in the United States.
Under the deal, US firms will own roughly 80 percent of TikTok USA, while ByteDance retains less than 20 percent. Oracle, the cloud giant, Silver Lake, the private equity firm, and MGX, the Abu Dhabi fund, together will control about 45 percent.
ByteDance may appoint one non-security board member; six seats will belong to Americans. Oracle will store all US user data on its Texas servers and rerun TikTok's recommendation algorithm using only domestic data.
The order demands strict monitoring of software updates, data flows, and algorithm changes to prevent foreign interference.
This action follows a 2024 law that threatened to ban TikTok unless ByteDance sold its US business. US officials warned that China's intelligence laws could force ByteDance to hand over American user information.
The executive order extends the sale deadline to December 16, giving investors time to secure Chinese approval. TikTok reaches 170 million American users. The app has become a key news source, especially for younger audiences.
President Trump credits TikTok with boosting his youth outreach during last year's campaign. He now maintains 15 million followers on his personal account and runs an official White House TikTok profile.
Beyond TikTok, this order sets a new standard for US regulatory power over foreign tech companies. It signals that Washington can compel divestiture instead of imposing outright bans.
Other Chinese-owned platforms like WeChat or Temu may face similar restructuring demands. The success of this forced sale could redefine global tech ownership rules.
It balances national security objectives with public demand for uninterrupted service. If American investors clear all regulatory hurdles, they will shape TikTok's US strategy, content rules, and data security.
As the world watches, this case may guide future policies on foreign apps operating in America. It highlights the US government's readiness to use its market influence to protect national security while preserving popular digital services.
Under the deal, US firms will own roughly 80 percent of TikTok USA, while ByteDance retains less than 20 percent. Oracle, the cloud giant, Silver Lake, the private equity firm, and MGX, the Abu Dhabi fund, together will control about 45 percent.
ByteDance may appoint one non-security board member; six seats will belong to Americans. Oracle will store all US user data on its Texas servers and rerun TikTok's recommendation algorithm using only domestic data.
The order demands strict monitoring of software updates, data flows, and algorithm changes to prevent foreign interference.
This action follows a 2024 law that threatened to ban TikTok unless ByteDance sold its US business. US officials warned that China's intelligence laws could force ByteDance to hand over American user information.
The executive order extends the sale deadline to December 16, giving investors time to secure Chinese approval. TikTok reaches 170 million American users. The app has become a key news source, especially for younger audiences.
President Trump credits TikTok with boosting his youth outreach during last year's campaign. He now maintains 15 million followers on his personal account and runs an official White House TikTok profile.
Beyond TikTok, this order sets a new standard for US regulatory power over foreign tech companies. It signals that Washington can compel divestiture instead of imposing outright bans.
Other Chinese-owned platforms like WeChat or Temu may face similar restructuring demands. The success of this forced sale could redefine global tech ownership rules.
It balances national security objectives with public demand for uninterrupted service. If American investors clear all regulatory hurdles, they will shape TikTok's US strategy, content rules, and data security.
As the world watches, this case may guide future policies on foreign apps operating in America. It highlights the US government's readiness to use its market influence to protect national security while preserving popular digital services.
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