TikTok, a popular social media platform based in the United States, has announced its decision to join forces with a consortium led by Oracle.
After weeks of intense negotiations, a breakthrough has been made in the sale of TikTok's U.S. business. The agreement, which was reached in Madrid recently, is expected to be finalized within the next 30 to 45 days.
The U.S. government had initially ordered TikTok to be sold by January 19, but President Trump granted a 75-day grace period upon taking office. This grace period has been extended multiple times, with the latest extension meeting the condition of successful sales negotiations as per the document.
The U.S. consortium, consisting of software giant Oracle, investment firms Andreessen Horowitz and Silver Lake, and existing ByteDance investors, will hold 80 percent of the U.S. business, with ByteDance retaining a 20 percent share.
The sale comes amidst concerns about Chinese influence, as per the U.S. Congress. The concern is that China's government could use TikTok to influence public opinion, making it a security risk.
Despite these concerns, content from the U.S. will remain accessible on TikTok worldwide, and vice versa. China will keep control of the TikTok algorithm, but will license it to the new U.S. operators for their own version.
Interestingly, Oracle had already expressed interest in TikTok earlier this year. President Trump has announced that he wants to speak with Chinese President Xi Jinping about the agreement this Friday.
The U.S. business of TikTok is being taken over by the consortium, marking a significant shift in the ownership of the popular social media platform. U.S. users are expected to switch to a new app, with the algorithms of the original being adapted for this app.
This development comes at a time when the only major social network not controlled by a U.S. company is considered a security risk due to concerns about Chinese influence. The final details of the agreement are eagerly awaited, with many hoping for a smooth transition that addresses the concerns of both parties.
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