Is the TikTok deal really done?
President Trump has signed an Executive Order formalizing government approval of the acquisition of U.S. TikTok from China-based ByteDance. Yet, is the TikTok deal really done, considering important questions remain about the $14 billion deal, including whether it actually has China’s approval?
In a statement after Trump issued the executive order, Chinese Foreign Ministry spokesman Guo Jiakun suggested the TikTok deal might not be done.
Jiakun called for a “lawful and balanced solution” and on the U.S. to “provide an open and fair environment for Chinese companies.”
“The Chinese government respects the wishes of the company in question. It would be happy to see commercial negotiations being carried out according to market rules. This process should lead to a solution that complies with China’s laws and regulations. It should also take into account both sides’ interests,” according Chinese Government controlled China Daily on Friday.
More TikTok Questions
Also unknown is which parts of the core algorithms and AI that made TikTok popular are part of the deal. Early in the negotiations China had vowed not let go of its technological advantage. But, is the TikTok deal really complete without this?
Also in question is how much new owners – who are rumored to all be Trump supporters – may change TikTok.
Oracle, Silver Lake and Abu Dhabi’s MGX will be the main investors, sources told CNBC Thursday. They will control 45% of TikTok USA. ByteDance, TikTok’s Chinese parent company, will retain 19.9%. The remaining 35% will be held by ByteDance investors and some new U.S. investors.
What’s Next?
Whatever happens next, it’s important to have a backup plan. Earlier this year, we offered this guide on how to prepare for whatever happens at TikTok. Still, many are wondering, is the TikTok deal truly finalized?
Bruce Houghton is Founder & Editor of Hypebot, Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of Skyline Artists.
