Trump Claims TikTok Deal Amid Questions of Legality and Control

President Donald Trump has announced a potential solution to keep the popular short-video app TikTok operational in the United States. His proposal involves a group of investors purchasing the app from its Chinese parent company, ByteDance. Despite the optimistic announcement, significant questions remain regarding the viability of this deal and its implications for American users.

Any sale of TikTok’s U.S. operations would necessitate that ByteDance divest its stake, which requires approval from the Chinese government. This presents a challenge, as Beijing is hesitant to relinquish control of a national champion amidst ongoing trade tensions with the United States. While the Trump administration claims China has accepted the terms of the sale, there has been no verification from Chinese officials. As of now, inquiries directed to TikTok and ByteDance have not received responses.

In an executive order signed recently, the White House provided details of the proposed deal, which prominently features key investors with strong ties to Trump. Notably, Larry Ellison, the CEO of Oracle and a significant ally of the President, is identified as a major figure in the arrangement. Ellison, one of Silicon Valley’s few prominent Republican figures, has recently engaged in partnerships with Trump in various technology sectors, including artificial intelligence.

The investor group also includes Rupert Murdoch and his son Lachlan, who oversee Fox News. The involvement of these conservative figures has led to speculation about a potential shift in TikTok’s content and governance, particularly given Trump’s previous assertions that the platform has assisted him in connecting with younger voters. Trump, however, has dismissed the notion of a conservative rebranding of TikTok.

As this situation unfolds, concerns are rising over the implications of increased government influence on media platforms. The evolving landscape of social media has seen changes with figures like Elon Musk, who has transformed X (formerly Twitter) into a platform aligned with far-right politics, which has alienated many traditional media outlets. Similarly, Mark Zuckerberg, CEO of Meta, has adjusted content moderation on Facebook and Instagram, responding to Republican claims of bias.

At a White House ceremony, Vice President JD Vance announced that the estimated value of the deal stands at $14 billion. This figure seems low, especially in comparison to Twitter’s $44 billion valuation at the time of its sale, raising questions about the true value of TikTok’s extensive reach among young users in the U.S.

Reports indicate that ByteDance may retain considerable value through a licensing arrangement, potentially obtaining about half of the new company’s profits while only holding a 20 percent stake. Such terms might prompt scrutiny from lawmakers in Washington, who are concerned about compliance with the divest-or-ban law that was supposed to take effect in January 2024 but has faced delays.

The executive order issued on the same day extended the deadline for banning TikTok until mid-January, creating further confusion as the Trump administration asserts that a deal has already been reached. John Moolenaar, the Republican chairman of the House Foreign Affairs Committee, emphasized the need for thorough oversight regarding this agreement, expressing skepticism about the assurances given on U.S. national security.

Legal experts like Carl Tobias from the University of Richmond School of Law have highlighted the vague assurances surrounding the deal, questioning whether it addresses the pressing security issues that have long been associated with TikTok. Additionally, Oracle, under Ellison’s leadership, has been managing TikTok’s data servers, raising doubts about the substantive changes this new arrangement would bring.

As discussions continue, the future of TikTok remains uncertain, caught in the crosshairs of national security concerns, international trade dynamics, and shifting political landscapes in the United States.