Trump announces Chinese leader's acceptance of TikTok agreement
In a significant development, a consortium led by Oracle, along with investment firms Andreessen Horowitz and Silver Lake, and existing ByteDance investors, are poised to take over TikTok's US operations. Chinese shareholders will retain a minority stake, though the exact percentage has not been disclosed publicly.
The US government is set to receive several billion dollars from these investors as part of the transaction, according to reports. This move comes after a basic agreement on the future of TikTok in the US was announced earlier in the week.
The deal is expected to see US investors holding 80% of a new US subsidiary of TikTok, with the remaining 20% staying with Chinese shareholders. However, the US law requires that neither the Chinese government nor ByteDance can have control over the algorithm.
The decision to allow the continued operation of TikTok in the US has been met with mixed reactions. Critics view the Chinese algorithm as a potential tool for the US government to influence public opinion, a claim denied by TikTok and ByteDance. On the other hand, the app's parent company, ByteDance, is headquartered in Beijing, leaving the app's future in the US in limbo.
Oracle, backed by Trump supporter Larry Ellison, will continue as TikTok's technical service provider in the US. The Trump administration had initially announced plans to target TikTok, citing national security concerns, but later granted an extended grace period. President Trump has assured that the agreements would prevent Chinese influence over the app.
The future of TikTok in the US was further complicated by a debate over press and free speech, sparked by a dispute over whether the right-wing activist Charlie Kirk's death can be discussed. The temporary suspension of Jimmy Kimmel's late-night show due to his comments on the Kirk case further fueled the debate.
The US law requires TikTok to be sold by ByteDance or shut down in the US by January 19, 2025. The TikTok deal is "doing very well" and investors are getting ready, according to President Trump. The Financial Times reported on TikTok's plan to continue using the Chinese-developed algorithm in its US operations.
The news of the TikTok deal comes as Chinese President Xi Jinping reportedly agreed to a deal regarding the video app. The exact details of this agreement have not been disclosed, but it is expected to bring some clarity to the future of TikTok in the US.
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