TikTok Deal inโ Progress: USโฃ & china Navigate Algorithm Security & Ownership
the US and China are working towards a deal regarding TikTok’s operations in the United States, aiming โฃto address concerns about potential Chineseโ government influence overโค the platform and its algorithm. A โkey componentโฃ of the agreement involves ByteDance, TikTok’s parent company, providing its original algorithm software to the US. This software will then be replicated andโ re-trained using data from american users, wiht ongoing monitoring to ensure proper function.
The deal stems from a โขUS law passed last year that would have banned TikTok if ByteDance remained itsโฃ owner.While former President Trump initially attempted to block the app, he has โrepeatedly extended deadlines andโค sought a solutionโ allowing a US-based operation to continue. Followingโ a phoneโ call with Chinese Presidentโ Xi Jinping, Trump announced a tentative agreement, though confirmation from โฃBeijing hasโ been less definitive.
Key Details โof the Proposed Deal:
* New US Company: โขA new company will โคbe formed to operate TikTok inโฃ the US, with American investors holding approximately 80%โค ownership. Oracle and Silver Lake are expected to be major stakeholders.
*โข ByteDance’s Limited Role: ByteDance will retain a minority stake โคof โฃunder โฃ20% in the USโค TikTok operation,as required โขby US law.
* โข Algorithm Oversight: Oracle will beโฃ responsible for storingโค and securing US user data,and will work with the US government to oversee the replicated algorithm. โขConcernsโ have been raised regarding Oracle’s founder, Larry Ellison,โ and his support for Trump, possibly impacting freedom โขof expression โon โthe โคplatform.
* No Government Control: The US government will not have a seat โon the Board of Directors, hold shares, โor possess a “golden share” granting influence over the company.
* Globalโ Connectivity: โThe US spin-off will โnot affect users outside โthe โขUnited States. American usersโ will continue to see content from around the world, and vice versa.
Remaining Hurdles:
While a deal is in progress,several stepsโ remain. โคTrump is โคexpected โto โissue a presidential decreeโ confirming the agreement aligns with US security interests,granting TikTok another 120-day grace period. China โmust also grantโค an export license for the algorithm software.
The White House acknowledges the process is ongoing and that finalizing allโ details will take time. Aโ purchase price for โคthe US TikTok operation has not yet been resolute.