The soap opera of Tiktok In the United States: Donald Trump has signed the executive order that the company will deliver in the United States to a group of investors premises, among which Oracle is going to play a prominent role, with the aim of ensuring that the social network in the country meets the requirements of a national law approved in 2024.
The new Tiktok USA will be valued, according to Reuters, in about 14,000 million dollars, and after the approval of China’s authorities to changes, Tiktok assets in the United States will be extracted in the coming weeks of the global, owned by Bytedance.
The United States vice president, JD Vance, has noticed that it will still be necessary to adjust various details to completely formalize the agreement. Among them, how the investment group that will keep most of the social network in the US will use the one that is considered its main asset: its algorithm of recommendations.
The order signed by Trump ensures that the group’s security partners that will own Tiktok in the United States will train the algorithm again and will be responsible for monitoring it, something that has raised doubts in certain sectors. The group, through a joint company established for this, will also take care of its operations.
Among the new owners of Tiktok USA there are several outstanding names of the world of technology and communications. Among them Michael Dell, president and CEO of Dell Technologies; and Rupert Murdoch, President Emeritus of Fox Corporation, owner of Fox News. Also Larry Ellison, CTO and founder of Oracle, would be in the group.
The Chinese Tiktok matrix, Bytedonce, will continue to be among the social network shareholders in the country, although it will only own a small part of the division, less than 20%. Bytedance is currently valued at 330,000 million dollars, and Tiktok only constitutes a small part of its income.
This is what they say from the United States, but it seems that the Chinese media point to a different framework for this agreement. According to them, Bytedance will continue to have a prominent role in Tiktok operations in the US, with the implementation of a new company in the country as part of the restructuring of the social network at the local level.
This new company, created by Bytedance, will be responsible for electronic commerce on the social network, branding operations and interconnection with the company’s international operations. This joint company will be in charge of the online security of Tiktok in the US, the protection of its content and software, as well as related local businesses.
According to other Chinese media, Bytedance also has plans to open a subsidiary in the United States, which would receive some income from the new Tiktok joint business in the country. In the latter, a group of three investors, among which are Oracle and Silver Lake, will keep half of their shares, although this percentage could vary. Meanwhile, a group of current shareholders of the social network will stay with another 30% of their titles. Among them are Susquehanna International Group, General Atlantic and Kkr.
What is clear is that the agreement includes a clause that establishes that Bytedance must have one of the seven positions of the Board of Directors of the new entity that will control Tiktok in the United States. The other six will occupy them Americans.
