TikTok's U.S. Divestment: A Presidential Move Toward Economic Truce

In a decisive move, President Donald Trump is set to declare a pivotal agreement for the divestment of TikTok's U.S. operations from its Chinese parent company, ByteDance, compliant with a 2024 legislative mandate, confirmed a White House official on Monday. Investors, including Oracle and private equity firm Silver Lake, will participate, with ByteDance retaining less than a 20% stake. Existing and new global investors will control TikTok US, the official stated, with household names among them.

Data from American users will be firmly stored in U.S.-based Oracle-run cloud facilities. The White House highlighted involvement by notable U.S. investors like Lachlan Murdoch, Larry Ellison, and Michael Dell, solidifying financial backing for TikTok's continued U.S. operations. While remaining confident of China's approval, the U.S. emphasizes additional paperwork is necessary, with assurances that the Chinese embassy in Washington supports a compliant commercial resolution.

The U.S. government will abstain from direct governance in the new TikTok entity, focusing on securing American control through the law's full divestiture provisions by 2024. Under Trump's executive order, a 120-day enforcement pause will allow stakeholders to finalize the deal. This breakthrough signifies progress in alleviating Sino-American trade tensions amid prolonged economic negotiations.

(With inputs from agencies.)