After months of negotiations between the U.S. and China, a preliminary agreement apparently has been reached over the fate of TikTok, with Oracle Corp. set to oversee the app’s algorithm.
The White House today explained that under the terms of a proposed deal, Oracle will audit the algorithm, while a newly formed joint venture — backed by U.S. investors — will take over U.S. operations. The move is designed to satisfy Washington’s demand that TikTok’s U.S. presence operate at arm’s length from its Chinese parent, ByteDance Ltd.
The agreement comes after President Donald Trump announced that a framework had been reached to stave off a nationwide ban on the app, so long as ByteDance sells control of its U.S. business. According to Trump, Beijing has also signed off on the arrangement — a rare instance of both governments finding common ground over one of the world’s most controversial apps.
On Sunday, Trump had said Oracle Chairman and Chief Technology Officer Larry Ellison, Dell Technologies Inc. Chie Executive Michael Dell, and Lachlan and Rupert Murdoch of Fox Corp. will be a part of the group to run TikTok’s algorithm in the U.S. The private-equity firm Silver Lake reportedly will also be involved.
“You know, they’re very well-known people,” Trump told Fox News. “And Larry Ellison is one of them. He’s involved. He’s a great guy. Michael Dell is involved. I hate to tell you this, but a man named Lachlan is involved.”
The White House later said that by “saving” TikTok, the administration will save “thousands of jobs” and small businesses. An official stated that “hundreds of billions of dollars over the next five years” will be saved. For the 170 million users, nothing is expected to change.
The order will include a 120-day grace period, giving the companies time to finalize the deal before any enforcement kicks in.
What’s less certain is Beijing’s position. It’s not yet clear if Chinese regulators have formally signed off or even begun the approval process. Still, the White House is signaling confidence that it has China’s backing.
Photo: Unsplash
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