U.S. Treasury Secretary Scott Bessent announced on Sunday that a deal has been reached to transfer TikTok’s U.S. operations to new owners. He shared this news during an interview on CBS’s Face the Nation.
Bessent mentioned that the agreement was finalized in Madrid and is part of a larger trade deal between the U.S. and China. Although he didn’t provide specific details about the deal, it’s clear that it’s a significant step in addressing ongoing tensions between the two countries.
This deal follows an executive order signed by former President Trump on September 25, which aims to give a U.S.-based ownership to TikTok while protecting national security. “My role was to ensure the Chinese government approved the transaction, and I believe we did that,” Bessent stated.
Interestingly, there’s speculation about the involvement of Barron Trump, the former president’s 19-year-old son, as a potential board member for the new ownership. Major conservative investors, including Rupert Murdoch and Larry Ellison, are reportedly part of this new ownership group.
Historically, Trump had previously threatened to ban TikTok back in 2020 as a response to China’s handling of the COVID-19 pandemic. In 2024, an app ban was passed by Congress and signed into law by President Biden, but it faced several delays.
The deal is estimated to be worth around $14 billion. New investors are expected to own about 65% of the company, significantly diminishing the stake of ByteDance, TikTok’s current Chinese parent company, to less than 20%.
With this transition, the new ownership will oversee the app’s algorithm and have control of the board of directors, with six of seven seats going to U.S. investors.
As this unfolds, Trump is currently in Malaysia for a summit, where he is also expected to meet Xi Jinping later this week. Their agenda includes discussions on trade, agricultural purchases, and issues such as the fentanyl crisis, which has influenced U.S. tariffs on Chinese goods.
This TikTok deal highlights the complexities of U.S.-China relations in today’s digital age. As tech giants face scrutiny over data privacy and ownership, the outcome of this deal could set a precedent for similar situations in the future.
