White House Offers More Details on Potential TikTok Deal
The White House provided additional information about a proposed agreement to restructure TikTok's U.S. operations under majority American ownership. According to White House Press Secretary Karoline Leavitt, an agreement has been reached but not signed that would see the short-form video app's U.S. operations spun out with six of seven board seats held by Americans.
Leavitt appeared on Fox News and stated that the algorithm controlling TikTok's content will be U.S.-controlled, as reported by Bloomberg. The deal is expected to be finalized in the coming days, Leavitt said.
The proposed agreement involves new investors taking a significant stake in the restructured company. Oracle, Andreessen Horowitz, and private equity firm Silver Lake Management are reportedly among the new investors, with Oracle responsible for TikTok's security and safety. Current owner ByteDance would own less than 20% of the spun-off company.
President Donald Trump had repeatedly extended the deadline for a U.S. bill banning TikTok if it wasn't sold to new owners. On Friday, he announced that Chinese President Xi Jinping had approved the deal.
The proposed agreement marks a significant development in the ongoing saga surrounding TikTok's ownership and operations in the United States. The app has faced scrutiny over concerns about data privacy and national security.
TikTok's algorithm is a key component of its success, and the fact that it will be U.S.-controlled could alleviate some of the concerns raised by lawmakers and regulators. However, the deal also raises questions about the role of new investors and their potential influence on the app's content and operations.
The proposed agreement has been met with mixed reactions from experts and observers. Some have welcomed the development as a step towards resolving the ongoing tensions surrounding TikTok's ownership and operations in the United States. Others have expressed concerns about the potential implications for data privacy and national security.
As the deal moves forward, it remains to be seen how the proposed agreement will be implemented and what its long-term consequences will be. The White House has not provided a specific timeline for when the deal is expected to be finalized.
The proposed agreement marks a significant development in the ongoing saga surrounding TikTok's ownership and operations in the United States. As the deal moves forward, it remains to be seen how the proposed agreement will be implemented and what its long-term consequences will be.
*Reporting by Techcrunch.*
