White House Reveals New Details on Potential TikTok Deal
▼ Summary
– An agreement has been reached for TikTok’s U.S. operations to be spun out under majority American ownership, though it has not yet been signed.
– Americans will hold six of seven board seats in the restructured TikTok, and the app’s algorithm will be U.S.-controlled.
– New investors in TikTok will include Oracle, Andreessen Horowitz, and Silver Lake Management, with Oracle responsible for security and safety.
– Current owner ByteDance would reportedly own less than 20% of the spun-off company.
– President Trump extended the deadline for a TikTok ban and stated that China’s president Xi Jinping approved the deal.
The White House has disclosed significant new information regarding a proposed arrangement for the video-sharing platform TikTok, confirming that a preliminary agreement has been reached to transition its U.S. operations to majority American ownership. While the deal has not yet been formally signed, officials indicate that key terms have been settled following extensive negotiations.
According to White House Press Secretary Karoline Leavitt, who spoke during a recent television interview, the restructured entity would feature a board with six out of seven seats held by U.S. representatives. She also emphasized that the algorithm powering the popular app would fall under American control, addressing longstanding national security concerns. Leavitt expressed confidence that the final signing would take place within days, marking a critical milestone in the process.
Investment firms set to join the new ownership structure include Oracle, Andreessen Horowitz, and Silver Lake Management. Oracle is expected to take responsibility for security and safety measures, a role seen as vital given the sensitive nature of user data and content moderation. Current parent company ByteDance would retain a minority stake, reportedly below twenty percent.
This development follows multiple extensions of a legislative deadline that would have otherwise banned TikTok in the United States absent a sale. President Trump acknowledged the progress, stating that Chinese President Xi Jinping had given his approval to the terms of the agreement.
(Source: TechCrunch)
