Trump says “Very Close to a Deal” on TikTok

TikTok Deal: Trump Says Administration Close to Finding Buyer Ahead of US Ban Deadline

Background

The popular video-sharing app TikTok is under threat from a US law that requires it to split from its Chinese owner ByteDance or face a ban in the United States. The law, motivated by national security fears and the belief that TikTok is ultimately controlled by the Chinese government, took effect on January 19, just before President Trump’s inauguration.

Deal in the Works

President Trump has announced that his administration is "very close" to a deal with a group of investors to find a buyer for TikTok’s US business. "We’re very close to a deal with a very good group of people," Trump said, without providing further details. The deal would involve "multiple" investors, but the exact terms are still unclear.

Possible Solution

According to reports, the most likely solution would see existing US investors in ByteDance roll over their stakes into a new independent global TikTok company. Additional US investors, including Oracle and Blackstone, the private equity firm, would be brought on to reduce the proportion of Chinese investors. Much of TikTok’s US activity is already housed on Oracle servers, and the company’s chairman, Larry Ellison, is a longtime ally of Trump.

Uncertainty Remains

Uncertainty remains, particularly over what would happen to TikTok’s valuable algorithm. The New York Times suggested that the new company could license it from ByteDance. Amazon has also reportedly made a last-minute bid to buy TikTok.

Trump’s Views on the Deal

The US president has downplayed the risks of TikTok being banned in the United States, saying he remains confident of finding a buyer for the app’s US business. Trump has also suggested that TikTok could be part of a broader deal with China to ease the stinging tariffs he imposed on Beijing as part of a worldwide blitz of levies.

Conclusion

The TikTok deal is a complex and sensitive issue, with both national security concerns and economic interests at play. The deal is expected to be finalized soon, but the exact terms and implications are still unclear.

Frequently Asked Questions

• Q: What is the US law that threatens TikTok’s ban in the United States?
  A: The law requires TikTok to split from its Chinese owner ByteDance or face a ban in the United States.
• Q: Who are the investors involved in the deal to buy TikTok?
  A: The exact details are unclear, but reports suggest existing US investors in ByteDance, Oracle, and Blackstone are involved.
• Q: What happens to TikTok’s valuable algorithm in the deal?
  A: The exact terms are unclear, but the New York Times suggests that the new company could license it from ByteDance.
• Q: Has Amazon made a bid to buy TikTok?
  A: Yes, according to reports, Amazon has made a last-minute bid to buy TikTok.