Trump Greenlights TikTok US Deal: Oracle, Silver Lake, and UAE Royals Step In
WASHINGTON D.C. – In a dramatic turn of events, President Donald Trump has signed an administrative order approving a restructuring of TikTok’s US operations, effectively averting a potential ban. The deal, announced today, hands substantial ownership stakes to American tech giants Oracle and Silver Lake, alongside a surprising investment from the UAE royal family. This move marks a significant escalation in the ongoing tech and trade tensions between the United States and China, and a pivotal moment for the future of the wildly popular short-form video platform.
TikTok US Ownership: A New Landscape
Under the terms of the agreement, ByteDance, TikTok’s Chinese parent company, will reduce its stake in TikTok US to just 19.9%. The remaining 80% will be distributed among a consortium of American and international investors. Oracle and Silver Lake will collectively hold a 45% stake, representing a significant win for US tech companies. A further 15% is going to MGX, the investment fund chaired by Sheikh Taje Jay Jed Alna Hian of the Abu Dhabi royal family, as reported by the Guardian. The remaining 20% will be held by other American investors including Dell and Pax.
This complex arrangement aims to address US national security concerns surrounding TikTok’s data practices and potential ties to the Chinese government. The US Senate had previously passed legislation expressing concerns that ByteDance could be compelled to share user data with Beijing, a claim vehemently denied by the company.
The US-China Tech War: A Timeline of Escalation
The TikTok saga is just the latest battleground in a broader trade and technology conflict between the US and China. Trump’s administration has imposed tariffs of up to 145% on Chinese goods, prompting retaliatory measures from Beijing. Negotiations have been ongoing since May, covering issues ranging from trade imbalances to export controls on rare earth magnets and restrictions on Chinese students studying in the US. The agreement on TikTok’s restructuring reportedly emerged from recent negotiations in Madrid.
Evergreen Insight: The US-China tech war isn’t simply about trade deficits. It’s a struggle for global technological dominance. Both countries recognize the strategic importance of controlling key technologies like artificial intelligence, 5G, and data analytics. TikTok, with its massive user base and sophisticated algorithm, became a focal point in this competition.
TikTok’s Value and Future Prospects
TikTok has exploded in popularity, boasting over 100 million active users in the United States alone. Vice President JD Vance recently touted the new TikTok US entity’s market value at $14 billion, though this pales in comparison to ByteDance’s overall valuation of $330 billion. For context, Meta (Facebook and Instagram) commands a market capitalization of $1.8 trillion.
While Trump initially threatened a complete ban, he ultimately opted for a restructuring deal, potentially recognizing TikTok’s cultural influence and its role in engaging younger voters – a demographic crucial for his 2024 presidential ambitions. However, key questions remain unanswered, including whether the US will allow ByteDance to continue providing the algorithm that powers TikTok’s “For You” page. Trump has given the company 120 days to resolve these issues.
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The future of TikTok in the US remains uncertain, but this deal represents a significant step towards resolving the immediate crisis. The involvement of Oracle, Silver Lake, and the UAE royal family signals a new era for the platform, one that will likely be shaped by both commercial interests and geopolitical considerations. Stay tuned to Archyde for continuing coverage of this developing story and the broader implications of the US-China tech rivalry.
