Trump announces arrangement on TikTok matter with Chinese head of state
Bytedance, the parent company of popular social media app TikTok, is set to undergo a significant change as American investors take over the majority stake in the US subsidiary of the platform.
The deal, which has been in the works for months, is gaining momentum and could be a formality soon. US tech giants Oracle, Silver Lake, and Andreessen Horowitz are set to hold an 80% stake in the new US TikTok subsidiary, while Chinese shareholders will hold the remaining 20%.
Despite Bytedance being headquartered in Beijing, it is important to note that the company is seen as a Chinese entity but is based on the Cayman Islands and is 60% owned by international investors. This move is aimed at preventing Chinese influence over the app.
The US government will reportedly receive several billion dollars from these international investors as part of the transaction. Oracle will continue to serve as the technical service provider for TikTok in the US.
The future of TikTok in the US has been uncertain, with over 170 million users relying on the platform for entertainment and creative expression. The app has been a source of controversy, with concerns over data privacy and potential foreign influence.
This development could bring another online platform under the financial influence of entrepreneurs likely sympathetic to the right-wing political camp around former President Trump. It's worth noting that the founder of Facebook, Mark Zuckerberg, has moved politically closer to the Republicans recently.
The Chinese President, Xi Jinping, has agreed to a deal over TikTok, although the specifics of the agreement are still being worked out. Work on the agreement is ongoing, and the signing is expected to take place soon.
Bytedance is bound by many Chinese regulations due to its headquarters in Beijing. However, the move to transfer majority ownership to American investors is a significant step towards ensuring the independence of TikTok in the US market.
As the deal progresses, it remains to be seen how this will impact the app's user base and overall operations. Stay tuned for more updates on this developing story.
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