Trump issues order affirming legality of TikTok agreement

Trump Signs Executive Order Saying His TikTok Deal is Legal

In a significant development in the tech landscape, former President Donald Trump has officially signed an executive order that declares the arrangements surrounding his TikTok deal as legal. This statement aims to clarify the ownership of TikTok’s U.S. operations, which are set to transition into a new entity primarily controlled by American investors. Trump’s move follows over a year of speculation about TikTok’s future in the U.S. market, especially after last year’s legislation that mandated ByteDance, TikTok’s parent company, to divest its American business or face a ban.

According to the details of the executive order, a collective of U.S.-based investors will acquire the majority stake in the new TikTok entity, while ByteDance retains a minor 19.9% interest alongside the rights to the app’s algorithm. This deal has piqued the interest of major companies like Oracle, which is set to oversee data security and continue managing TikTok’s algorithm. Notable investors include tech giants and a range of financial backers who are collectively poised to control around 45% of the business.

This executive order comes after a wave of interest in TikTok from various American firms, which were eager to ensure there would be no disruption in the app’s services. With the potential valuation of the new company estimated to be around $14 billion, the stakes are undeniably high.

Vigorous conversations surrounding the control of TikTok’s algorithm continue, with lawmakers expressing concerns about the licensing agreement with ByteDance. Trump stated that although he hopes for a platform favoring “MAGA” content, fairness to all users will remain a priority as the deal moves forward.

As TikTok navigates this new reality, many are eager to see how this arrangement will affect user experience and content regulation on the platform. What are your thoughts on the TikTok deal? Leave a comment below!