The agreement requires that all data on American users will be stored on US cloud computing infrastructure run by Oracle
President Donald Trump this week will declare that a deal to divest TikTok’s US operations from its Chinese owner ByteDance will meet requirements set out in a 2024 law, a White House official said on Monday, adding that investors will include Oracle and private equity firm Silver Lake.
ByteDance will own less than 20 per cent while TikTok US will be controlled by a mix of its existing US and global firms as well as a significant number of new investors who have no affiliation with ByteDance, the official said.
The full slate of investors is not yet finalized.
It’s going to be real household names, the official added, saying that Trump will sign an executive order certifying that the deal is legal under the law.
The agreement requires that all data on American users will be stored on US cloud computing infrastructure run by Oracle.
Trump said on Sunday that media mogul Lachlan Murdoch and business leaders Larry Ellison and Michael Dell would be involved as US investors in a proposed deal to keep TikTok operating in the United States.
The US is confident that China has approved the deal and does not plan further talks with Beijing about its details, the official told reporters, but added that additional paperwork is required from both sides.
The Chinese embassy in Washington said on Monday it would be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China’s laws and regulations and takes into account the interests of both sides.
The official added that the valuation of TikTok’s US assets will be “many billions of dollars.” The US government will not take a board seat or receive a golden share in the new entity that will own TikTok US. It is unclear if the US government will receive payments as a condition of approval.
Trump’s executive order will include a new 120-day enforcement pause to allow the investors and ByteDance to close the agreement, the official added.
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