Trump Signs Executive Order Approving TikTok U.S. Business Acquisition: "Enterprise Value at $14 Billion"
ByteDance Must Reduce Stake to Below 20 Percent
Oracle and Silver Lake to Secure 45 Percent Ownership
U.S. President Donald Trump has signed an executive order approving the sale of the American operations of the Chinese video platform TikTok. As a result, TikTok will be able to continue its service in the United States.
On September 25 (local time), President Trump signed an executive order allowing TikTok to maintain its U.S. operations.
Accordingly, ByteDance, the Chinese parent company of TikTok, must sell its U.S. business rights and reduce its stake to below 20 percent. A new joint venture will operate TikTok's U.S. entity. However, final approval from the Chinese government is required for the sale of TikTok's U.S. business rights to be completed.
According to CNBC, Oracle, Silver Lake, and the Middle Eastern investment fund MGX are expected to participate as major investors, securing about 45 percent of TikTok's U.S. entity. Oracle will be responsible for TikTok's security operations and cloud service provision. Previously, President Trump stated, "Larry Ellison, CEO of Oracle, is playing a key role in the ownership structure," and emphasized, "Now, TikTok will be owned and operated by Americans."
Additionally, media mogul Rupert Murdoch, his son Lachlan Murdoch, and Michael Dell, CEO of Dell Technologies, are also reported to be potential members of the investment group.
However, the U.S. federal government will not directly hold shares in TikTok's U.S. entity, nor will it acquire a 'golden share' that would grant veto power over key management decisions.
Previously, President Trump had extended the deadline for ByteDance to sell TikTok's U.S. operations several times. This was because, in April of last year, the U.S. Congress passed the 'TikTok Ban Act,' putting TikTok at risk of being suspended in the United States unless ByteDance sold its U.S. business rights. Subsequently, during recent high-level U.S.-China trade negotiations, China, which had previously opposed the sale of TikTok, shifted its stance, accelerating discussions on the sale of TikTok's U.S. business rights. President Trump reached a final agreement on the sale of TikTok after a phone call with Chinese President Xi Jinping.
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The market valued ByteDance's entire company at $330 billion as of last month, with the value of TikTok's U.S. business rights estimated at $30 billion to $35 billion. J.D. Vance, U.S. Vice President, who played a key role in the TikTok sale, stated that the enterprise value of TikTok's U.S. entity is approximately $14 billion.
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