President Donald Trump has signed an executive order approving a deal that will transfer the ownership of TikTok’s US operations to American investors, including Oracle and other prominent figures. This move comes after months of negotiations and concerns over national security implications due to the app’s Chinese ownership.
The deal, valued at $14 billion, will see a group of investors, including Oracle and private-equity firm Silver Lake, taking a roughly 50% stake in TikTok U.S., with existing ByteDance shareholders holding around 30%. The agreement also includes the restructuring of TikTok’s U.S. operations, with ByteDance setting up a new U.S. company responsible for various aspects of the app’s operations.
President Trump emphasized that the new entity overseeing TikTok in the U.S. would be American-operated, with a focus on protecting Americans’ data privacy as required by law. The executive order also addresses concerns over TikTok’s recommendation algorithm, stating that it will be retrained and monitored by the U.S. company’s security partners.
While the deal has been met with approval from the Trump administration, some experts and lawmakers have raised questions about the specifics of the agreement. Alan Rozenshtein, a professor at the University of Minnesota Law School, highlighted the need for more information regarding ByteDance’s control over the algorithm and operational roles within the new U.S. entity.
On the international front, Chinese media reports have suggested that ByteDance may still play a significant role in TikTok’s operations, despite the transfer of ownership to American investors. This discrepancy in perspectives underscores the complexity of navigating global business deals and regulatory requirements in the tech industry.
Public reactions to the executive order have been mixed, with some expressing relief that TikTok will continue to operate in the U.S. under American ownership, while others remain cautious about the implications of the deal. Republican lawmakers have called for more transparency to ensure that the agreement represents a clean break from Chinese influence.
As the details of the TikTok deal continue to unfold, it remains to be seen how the transition of ownership will impact the app’s millions of U.S. users and the broader landscape of social media platforms. The intersection of technology, national security, and international business interests in this case highlights the complexities of navigating the digital age.
Overall, the transfer of TikTok’s U.S. operations to American investors represents a significant development in the ongoing saga surrounding the popular app’s ownership and future in the United States.
#TechNews #SocialMedia #EthicalAI
References:
– Wired: [https://www.wired.com/story/president-trump-signs-tiktok-deal/]
– The Verge: [https://www.theverge.com/news/640745/tiktok-deal-trump-us-china-bytedance]
– CNET: [https://www.cnet.com/tech/trump-signs-order-to-transfer-tiktok-to-us-ownership/]
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