TikTok Deal Reached: U.S.-Based Joint Venture to Take Control of App Operations

Deal for TikTok Creates U.S. Joint Venture, Government Won't Have a Stake A proposed deal between the popular short video app TikTok and investors that include Oracle and Silverlake has been reached, creating a new U.S.-based joint venture that will take control of the app's operations in the country. According to a senior White House official, who spoke on condition of anonymity, the agreement meets both U.S. and Chinese law requirements. The deal does not involve the U.S. government taking a stake or having a seat on the board of the new joint venture. The new company will obtain a copy of TikTok's content recommendation algorithm, which will then be re-trained using data from the United States. Oracle will serve as the security provider for the app, overseeing aspects such as how the algorithm functions and how Americans' data is stored. "We're pleased that we've been able to reach an agreement that meets both U.S. and Chinese law requirements," said a spokesperson for TikTok in a statement. "This deal demonstrates our commitment to complying with all applicable laws and regulations." The proposed deal has been months in the making, with negotiations between the Trump administration and ByteDance, the parent company of TikTok, having stalled on several occasions. In January 2020, President Donald Trump issued an executive order requiring ByteDance to divest its ownership of TikTok due to national security concerns. The order was later blocked by a federal court, but the deal has continued to be a point of contention between the U.S. and China. The new joint venture is seen as a compromise that addresses some of the concerns raised by the Trump administration. However, not everyone is pleased with the agreement. "This deal does not address the fundamental issues surrounding TikTok's data collection practices," said Senator Josh Hawley (R-MO), who has been a vocal critic of the app. "We need to ensure that U.S. companies are not compromised by foreign entities." The proposed deal still requires regulatory approval from both the Committee on Foreign Investment in the United States (CFIUS) and the Federal Trade Commission (FTC). As the deal moves forward, it remains to be seen how the new joint venture will operate and whether it will address some of the concerns raised by lawmakers and regulators. *Reporting by Npr.*