TikTok American branch to be acquired by Oracle and associates - Trump grants another delay in sale transaction
In a series of developments, the fate of popular social media platform TikTok in the U.S. continues to unfold.
The U.S. government has expressed concerns about TikTok's algorithm, fearing it could potentially be used by the Chinese government to influence public opinion. However, TikTok and its parent company, Bytedance, have repeatedly denied these allegations.
Despite these concerns, TikTok will continue to use the algorithm developed in China to determine which videos are shown to users in the U.S. This decision has been met with criticism, as some U.S. lawmakers see this as a potential risk.
To address these concerns, the U.S. law requires that neither the Chinese government nor Bytedance have control over the TikTok algorithm. The sale of TikTok's algorithm is subject to Chinese government approval, as per a rule introduced during Trump's first term.
The sale of TikTok is currently under negotiation. The new U.S. subsidiary of TikTok will be owned by American investors, including Oracle, Silver Lake, and Andreessen Horowitz, who will receive 80 percent of the subsidiary. The remaining 20 percent will remain with Chinese shareholders.
Trump's stance on TikTok has shifted from being an opponent to a supporter, emphasizing the app's help in mobilizing young voters during the election campaign. Despite previous legal failures to force a TikTok sale, Trump has granted an additional 75-day grace period for the app, extending the deadline beyond January 19.
Bytedance, which is 60 percent owned by international investors and is based on the Cayman Islands, has a large headquarters in Beijing and is subject to many Chinese regulations.
The ongoing sales negotiations for TikTok are the first to meet the legal requirement for a pause in the enforcement of the law. However, there is a solid legal basis for a potential TikTok ban in the U.S., but Trump has not yet enforced it.
TikTok and Bytedance continue to deny that the algorithm poses such a risk, and the saga of TikTok's future in the U.S. continues to unfold.
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