- US officials believe China has granted necessary approvals for a deal to transfer TikTok's US assets to American ownership, a crucial step in averting a potential ban.
- The restructured entity would feature a board dominated by US figures, including Lachlan Murdoch, Larry Ellison, and Michael Dell.
- The development follows a US mandate requiring divestiture by January 2025 to address longstanding national security concerns.
Averting a Shutdown
US officials are now confident that Chinese authorities have signed off on a deal to restructure TikTok's US operations, according to people familiar with the matter. This approval removes a significant roadblock that had threatened to force the popular video-sharing app to shut down for its American users by early 2025. The US had mandated the divestiture due to bipartisan concerns over data privacy risks stemming from its ownership by China's ByteDance.
New American-Led Board
With the Chinese approval, the complex transaction can proceed. The plan involves creating a new corporate structure for TikTok's US business, with a board of seven directors. Six of those seats would be held by American citizens, effectively placing the company under US oversight. ByteDance would retain a single seat. High-profile US investors, including media scion Lachlan Murdoch and technology titans Larry Ellison and Michael Dell, have been named as participants in the deal, lending significant financial and political weight to the endeavor.
Efforts to reach ByteDance for comment were not immediately successful. The deal, if finalized, would safeguard thousands of US jobs and preserve a major advertising channel for American businesses that has become integral to the influencer economy. The development marks a potential de-escalation in the long-running tech tensions between Washington and Beijing, though the broader scrutiny of Chinese technology firms is expected to persist. The situation remains fluid, and final implementation details are still being negotiated.