TikTok Ban on Hold as US, China Finalize Ownership Deal
In recent developments, President Donald Trump announced a deal between the US and China to keep TikTok operating in the United States. He stated, "We have a deal on TikTok, I've reached a deal with China, I'm going to speak to President Xi on Friday to confirm everything up." The social media platform, owned by Chines
In recent developments, President Donald Trump announced a deal between the US and China to keep TikTok operating in the United States. He stated, "We have a deal on TikTok, I've reached a deal with China, I'm going to speak to President Xi on Friday to confirm everything up." The social media platform, owned by Chinese company ByteDance, was previously instructed to sell its US operations or face a potential shutdown. However, Trump has postponed the ban multiple times since its initial announcement in January, with the latest extension set for December 16.
According to reports, a buyer will be chosen soon. The Wall Street Journal detailed that under the negotiation, TikTok's US business would be controlled by an investor group including Oracle, Silver Lake, and Andreessen Horowitz. A new US entity would hold about 80% of the equity, with American representatives dominating the board, including one member appointed by the US government. U.S. users are expected to transition to a new app currently in testing, featuring content algorithms licensed from ByteDance, which is crucial to TikTok’s popularity.
CNBC reported the deal involves both current and new investors, and is expected to close in 30-45 days. Oracle will host TikTok’s US servers, addressing US lawmakers' security concerns. A US trade delegation announced a "framework" agreement with China during Madrid negotiations, with China emphasizing that no deal would harm its firms' interests.
China's cyberspace administration suggested licensing algorithms and IP rights in accordance with Chinese laws. Trump initially called for TikTok’s ban, but reversed his position. In April 2024, the US Supreme Court upheld a law forcing ByteDance to sell its US operations, citing national security concerns, which ByteDance denies, claiming its US operations are separate.
Also Read: Trump Govt Confirms Final Deal With China on TikTok
TikTok briefly went offline in January due to the pending ban, but the shutdown lasted less than a day as the ban was delayed multiple times, most recently until December 16. The ongoing negotiations reflect a complex balance between national security concerns and business interests.
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