TikTok has signed the deal backed by US President Donald Trump to sell its US assets to a group of American investors, CEO Shou Chew told employees in a memo on Thursday (local time), as per CNN.
Although the transaction is not yet complete, the move brings TikTok one step closer to securing its long-term future in the United States.
It comes after a law passed last year required that the US version of the app be spun off from its parent company, ByteDance, or be banned in the United States, CNN reported.
Trump signed an executive order on September 26 clearing the way for the completion of a deal to sell TikTok’s US assets to a consortium of mostly American investors.
The order marked an important procedural step toward finalizing the TikTok sale, but the deal is not yet complete. Although both US and Chinese officials have signaled they are aligned on the deal’s framework, it will still likely require regulatory approvals from both countries.
However, during the signing event, Trump said Chinese leader Xi Jinping had green-lit the deal and expressed confidence that it would be completed.
“I had a very good talk with President Xi,” Trump said, referring to a phone call between the two leaders. “And we talked about TikTok and other things, but we talked about TikTok and he gave us the go-ahead” for the deal, as per CNN. (ANI)
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