Trump announces agreement with Chinese authorities on TikTok deal
In a series of developments, the future of TikTok in the United States remains uncertain as negotiations continue.
The U.S. President, Donald Trump, has stated that the agreements regarding TikTok would prevent Chinese influence over the popular app. Work on the TikTok agreement is still ongoing, according to Trump.
Oracle, backed by Trump supporter Larry Ellison, will retain its role as TikTok's technical service provider in the U.S. American investors are expected to take over TikTok's U.S. operations, according to Trump. The US investors involved in the announced sale to the new US subsidiary of TikTok include the software company Oracle and investment firms Silver Lake and Andreessen Horowitz, who are set to receive a dominant stake of about 80 percent in the new US TikTok entity.
The Wall Street Journal reported that the U.S. government would receive several billion dollars from these investors as part of the transaction. Chinese shareholders will hold the remaining 20% of the new U.S. subsidiary of TikTok.
TikTok has been facing the threat of a U.S. ban for months. The app's headquarters is in Beijing, making it subject to Chinese regulations. Bytedance, the parent company of TikTok, is based on the Cayman Islands. The founders of Bytedance, including Zhang Yiming, only hold a 20% stake but maintain control through shares with more voting rights.
Facebook's parent company, Meta, which includes Instagram, has seen its founder, Mark Zuckerberg, move politically closer to the Republicans. Elon Musk, a former Trump ally, has taken over Twitter, which has seen an increase in right-wing political voices. The takeover of TikTok by Oracle could bring another online platform under the financial influence of businesspeople sympathetic to the right-wing political camp around Trump.
It is important to note that the ongoing situation is unlikely to have any impact on the operation of TikTok outside of the U.S., such as in Germany. Chinese President Xi Jinping has reportedly agreed to a deal regarding TikTok, but the details of this deal have not been disclosed.
As negotiations continue, the fate of TikTok in the U.S. remains uncertain. Trump has granted an additional grace period upon taking office, which he later extended multiple times, despite there being no basis for this in the law. The U.S. government and TikTok's parent company, Bytedance, continue to work towards a resolution that addresses the concerns of both parties.
Read also:
- Biden Examines US-Mexico Frontier Amidst Republican Criticism
- Condolences offered by Cuba for earthquake tragedy in Turkey
- Meta's legal team defends their exemption from liability concerning a firearm manufacturer's Instagram posts in the litigation filed by the Uvalde victims' families.
- Russian cyber spying activities under scrutiny, as Frei urges for enhanced cyber defenses
