Chinese leader concurs on TikTok arrangement with Trump
In a series of developments, the future of TikTok in the United States has been given a clearer direction. President Donald Trump announced that a deal is progressing well, with American investors set to take over the app's US business.
Oracle, a prominent American tech company backed by Trump supporter Larry Ellison, is set to hold 80% of a new US subsidiary of TikTok. The Wall Street Journal reported that Oracle would be joined by investment firms Silver Lake and Andreessen Horowitz, with Oracle expected to hold about a 20% stake in the new company.
The takeover could potentially bring another online platform in the US under the financial influence of Trump supporters. However, Chinese shareholders would hold the remaining 20% of the new US subsidiary. Chinese President Xi Jinping is reported to have agreed to the deal, according to Trump.
TikTok, with over 170 million users in the US, has been a subject of controversy due to its parent company, Bytedance, being headquartered in Beijing. Trump granted an additional grace period for TikTok, which he later extended, beyond the law's specified date of January 19, 2025.
Bytedance is 60% owned by international investors, including American investors, which may have contributed to the recent developments. The founders of Bytedance, like Zhang Yiming, hold a 20% stake in the company but maintain control through shares with more voting rights.
Bytedance is based on the Cayman Islands, which may have helped in navigating the regulatory challenges in the US. However, the company is still bound by many Chinese regulations due to its headquarters in Beijing.
Elon Musk, a tech billionaire and briefly a Trump advisor, has taken over a different online platform, which has seen right-wing political voices become more prominent. Meanwhile, Mark Zuckerberg, the founder of Meta (parent company of Facebook and Instagram), has moved politically closer to the Republicans.
The developments regarding TikTok should not affect the operation of the short video app outside the US, such as in Germany. As the deal unfolds, it remains to be seen how the new ownership will shape TikTok's future in the US.
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