TikTok deal could face major hurdles fas questions surround billionaires’ stakes in China parent ByteDance

President Trump’s TikTok deal may face obstacles due to billionaires, taxes, and China hawks in Congress, as per On The Money’s findings.

Jeff Yass, a billionaire and major Trump supporter, along with Bill Ford of General Atlantic Partners and private equity giant KKR, could potentially be affected by Congress or face significant US tax obligations if they are required to divest their current stakes in ByteDance, the Beijing-based owner of TikTok, to invest in a new US-controlled TikTok.

Susquehanna, led by Yass, holds a 15% stake in ByteDance, while General Atlantic holds an equally large position. KKR’s stake is approximately 1.7%.

The current concern revolves around whether the rollover of shares aligns with the law stipulating that US investors must control TikTok. There is a possibility that the new company could end up with a majority of Chinese ownership if the Chinese shares, including the 19.9% stake held by ByteDance, are taken into account.

While the White House believes the deal complies with the law, some stakeholders are uncertain. Congressional worries are increasing, with concerns that the deal may still violate legislation aiming to sever ties with China completely.

China hawks in Congress have expressed intentions to scrutinize the framework of the US-led TikTok deal announced by President Trump. Some lawmakers advocate for shutting down TikTok, citing concerns of spying and inappropriate content targeting mainly young adults and children in the US.

To address potential issues, Yass, Ford, and KKR could retain their ByteDance shares and invest in the new US entity estimated at around $50 billion. Another option could involve a partial rollover of shares, possibly satisfying China hawks’ concerns over ownership.

Alternatively, they could transfer their Chinese shares and rely on President Trump to defend the deal’s legality. Additionally, China’s President Xi Jinping has granted US tech giant Oracle control over TikTok’s algorithm, a key factor in curating user content, addressing previous concerns about spying.

The algorithm challenge was seen as a significant hurdle until the ByteDance share issue emerged.