White House: Americans will dominate the board of directors of the new "TikTok"

White House: Americans will dominate the board of directors of the new "TikTok"

The White House has announced a framework agreement to transfer TikTok’s ownership to US control, with Americans set to dominate the board of directors of the new entity. This development comes amidst ongoing trade talks between the United States and China, where the fate of the popular social media app has been a contentious issue.

According to the agreement, the United States and China have reached a deal that will address US security concerns over TikTok’s data handling practices. The deal, which was negotiated during trade talks in Madrid, will see TikTok's US operations transferred to a US-based entity, with the US government playing a significant role in the new board of directors.

US Treasury Secretary Scott Bessent, who was part of the trade delegation in Madrid, stated that the deal would address national security concerns but keep "Chinese characteristics" of the app that Chinese negotiators care about. Bessent emphasized that the US is more concerned with national security than the "Chinese characteristics" of the app .

The framework agreement will be further discussed in a call scheduled on September 19 between President Trump and Chinese President Xi Jinping. This deal comes despite the US pushing other nations to impose tariffs on China over purchases of Russian oil, which was briefly discussed with the US’s Chinese counterparts.

Investors are keeping a close eye on potential buyers for TikTok, with several companies reportedly showing interest, including AppLovin (APP), Amazon (AMZN), and Oracle (ORCL). The U.S. is TikTok’s largest market and a key driver of its advertising revenue, making it a strategic asset for potential buyers.

Jim Cramer, the popular host of CNBC's "Mad Money" TV show, has expressed bullish sentiment on the stock of the company that will own TikTok, noting its unmatched advertising power .

The looming ban on TikTok has been a contentious issue, with the US government pushing for its sale or ban due to concerns about data security. The deal reached in Madrid is expected to de-escalate trade tensions and pave the way for further trade talks between the US and China.