Explainers$14B TikTok Deal Faces Uncertainty Amid Trump Order

$14B TikTok Deal Faces Uncertainty Amid Trump Order

US President Donald Trump on Thursday advanced plans for American investors to acquire TikTok’s US operations from Chinese owner ByteDance Ltd. The move comes with an executive order aimed at protecting the data of US users. Oracle Corp. will assist in securing the algorithm for the American version of the platform.

TikTok Staff Concerned About Job Security

The announcement brings some relief to TikTok staff in the US, who have faced uncertainty due to potential divestment and political pressure. However, many employees remain worried about their jobs as new owners prepare to take over.

“If it works out, great. If it doesn’t, we’ll have to look for another job,” a TikTok staffer in the e-commerce division told Business Insider.

Another employee expressed concerns about ByteDance stock and questioned whether a “retrained” US algorithm would be as effective as the one managed by ByteDance.

Despite concerns, some employees see the deal as offering clarity and stability.

Trump Claims Approval from President Xi

Trump stated that Chinese President Xi Jinping had given a “go-ahead” for the transaction.

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“I had a very good talk with President Xi,” Bloomberg quoted Trump as saying.
“We talked about TikTok and other things, but we talked about TikTok and he gave us the go-ahead.”

China has not publicly confirmed approval, noting that any TikTok transaction must comply with Chinese law without explicitly endorsing the sale.

TikTok Deal Valued at $14 Billion

Vice President JD Vance, who helped negotiate the deal, stated that the new US company could be worth approximately $14 billion.

“Ultimately, the investors are going to make the determination about what they want to invest in and what they think is the proper value,” Vance said.

The deal aims to ensure US user data security while providing some stability for TikTok staff, though future uncertainties remain.

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