Trump announces Chinese leader's confirmation of TikTok agreement
In a significant development, TikTok, the popular video-sharing app, has found a new lease of life in the United States. The app, which boasts over 170 million users in the country, has been the subject of uncertainty for months due to political and regulatory concerns.
The new US subsidiary of TikTok will be majority-owned by a consortium of American investors, including Oracle, Silver Lake, and Andreessen Horowitz, who will hold an 80% stake. Oracle, backed by Trump supporter Larry Ellison, will retain its role as a technical service provider for TikTok in the US.
This development brings another online platform in the US under the financial influence of entrepreneurs sympathetic to the right-wing political camp around former President Trump. In a move that could further solidify this trend, Facebook's parent company, Meta, which includes Instagram, has reportedly moved politically closer to the Republicans under founder Mark Zuckerberg.
The development follows Trump's assurance that the agreements would prevent Chinese influence over the app. Chinese shareholders will hold the remaining 20% of the new US subsidiary of TikTok, but the founders of Bytedance, including Zhang Yiming, will maintain control through shares with more voting rights.
The US government has reportedly spoken about a basic agreement on the future of TikTok in the US, following Trump's repeated statements that American investors would take over the US business of TikTok. Chinese President Xi Jinping has also reportedly agreed to a deal over the video app.
Bytedance, the parent company of TikTok, is 60% owned by international investors, which may have contributed to the pressure for a change in ownership. The company, based on the Cayman Islands, is also subject to many Chinese regulations due to its headquarters in Beijing.
According to a law passed last year, TikTok should have been sold by its parent company Bytedance by January 19, 2025, or it would have to be taken offline in the US. However, Trump granted an additional deadline for TikTok, which he later extended several times, with no basis in the law.
The Wall Street Journal reported that the US government would receive several billion dollars from investors as part of the TikTok transaction. The future of TikTok in the US has been a contentious issue, with the app's continued operation being seen as a victory for free speech and digital innovation.
The news of TikTok's new US subsidiary comes after the takeover of Twitter by tech billionaire Elon Musk, which has seen right-wing political voices become more prominent on the platform. The development is likely to further shape the digital landscape in the US, with the influence of tech companies and their political leanings becoming increasingly apparent.
As the deal is still ongoing, the final details are yet to be announced. The US President Donald Trump stated that work on the TikTok deal is still ongoing, and the app's users in the US can continue to enjoy the platform for now.
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