TikTok’s Future in Jeopardy as US Administration Works on Plan to Save App
Washington D.C. – The administration of US President Donald Trump is working on a plan to save TikTok, the popular short video app used by 170 million Americans, by tapping software company Oracle and a group of outside investors to effectively take control of the app’s global operations, National Public Radio reported on Saturday.
Under the deal being negotiated by the White House, TikTok’s China-based owner, ByteDance, would retain a minority stake in the company, but the app’s algorithm, data collection and software updates would be overseen by Oracle, which already provides the foundation of TikTok’s Web infrastructure, NPR reported.
Key Terms of the Deal
According to NPR, the possible deal would mean that American investors would own a majority stake in TikTok. However, the report added that the terms of the deal could change and are still being hammered out.
“The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok,” a person directly involved in the talks but not authorised to speak publicly was quoted as saying by NPR.
“ByteDance wouldn’t completely go away, but it would minimise Chinese ownership.”
Other Potential Investors
Other potential investors who are engaged in the talks include Microsoft, NPR reported.
Meetings and Negotiations
Officials from Oracle and the White House held a meeting on Friday about a potential deal, and another meeting has been scheduled for next week, NPR reported.
Oracle was interested in a TikTok stake “in the tens of billions,” but the rest of the deal is in flux, the NPR report cited the source as saying.
Trump’s Involvement
Trump has said he “would like the US to have a 50% ownership position in a joint venture” in TikTok.
Appeasing Congress
NPR cited another source as saying that appeasing Congress is seen as a key hurdle by the White House.
Free Speech Advocates
Free speech advocates have opposed TikTok’s ban under a law passed by the US Congress and signed by former President Joe Biden.
TikTok’s Response
The company says US officials misstated its ties to China, arguing its content recommendation engine and user data are stored in the US on cloud servers operated by Oracle while content moderation decisions that affect American users are also made in the US.
Conclusion
The fate of TikTok hangs in the balance as the US administration works to save the app. The proposed deal with Oracle and other investors could change the ownership structure of the company and potentially minimize Chinese ownership. However, the terms of the deal are still being negotiated and may change. The outcome will have significant implications for the future of TikTok and its users.
FAQs
Q: What is the proposed deal between the US administration and TikTok?
A: The proposed deal involves Oracle and other investors taking control of TikTok’s global operations, with ByteDance retaining a minority stake in the company.
Q: What is the goal of the deal?
A: The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok, while minimizing Chinese ownership.
Q: Who are the other potential investors involved in the talks?
A: Microsoft is also engaged in the talks, according to NPR.
Q: What is the current status of the deal?
A: The terms of the deal are still being negotiated and may change. Meetings between Oracle and the White House have been held, and another meeting is scheduled for next week.
Q: What are the implications of the deal for TikTok and its users?
A: The outcome of the deal will have significant implications for the future of TikTok and its users. If the deal is successful, it could change the ownership structure of the company and potentially minimize Chinese ownership. However, the terms of the deal are still being negotiated, and the outcome is uncertain.