Trump's Video App Reaches Deal with Chinese Leader on TikTok Agreement
In a series of recent developments, the popular video-sharing app TikTok is set to undergo significant changes in its American operations.
According to reports, the TikTok algorithm, originally developed in China, is set to be used in the U.S. as part of TikTok's plans. However, work on the agreement regarding this transition is still ongoing, as stated by former U.S. President Donald Trump.
To ensure user data security and prioritise American interests, the control over TikTok's algorithm in the U.S. is being transferred to Oracle as part of a deal. This deal aims to keep TikTok's American operations largely under U.S. control, thereby reducing the influence of TikTok's Chinese parent company, ByteDance.
Under a U.S. law passed last year, TikTok would have had to be sold by ByteDance or shut down in the U.S. by January 19, 2025. However, the deal with Oracle is expected to circumvent this requirement.
U.S. investors, including Oracle, Silver Lake, and Andreessen Horowitz, are set to hold 80% of a new U.S. subsidiary of TikTok, with the remaining 20% staying with Chinese shareholders. The U.S. government would reportedly receive several billion dollars from investors as part of the TikTok transaction, according to the Wall Street Journal.
The debate over TikTok's future in the U.S. has been further fuelled by the temporary suspension of Jimmy Kimmel's late-night show due to his comments on the death of right-wing activist Charlie Kirk. This incident sparked a debate over press freedom and freedom of speech in the U.S.
Critics in the U.S. view the TikTok algorithm as a potential tool for government influence over public opinion. However, both TikTok and ByteDance have denied these allegations.
The Chinese President, Xi Jinping, has reportedly agreed to a deal over the video app TikTok. The future of TikTok in the U.S. has been uncertain for months, with TikTok previously reporting having over 170 million users in the U.S.
The Trump administration had announced plans to target commentators who, in their view, express themselves inappropriately. This announcement added to the uncertainty surrounding TikTok's future in the U.S.
Despite the ongoing debates and controversies, U.S. President Donald Trump has assured that the agreements would prevent Chinese influence over the app. Oracle will continue as TikTok's technical service provider in the U.S., with Larry Ellison, a Trump supporter, associated with Oracle.
The TikTok deal is "progressing well," according to Trump, but the final outcome remains to be seen. As the situation evolves, it is clear that the future of TikTok in the U.S. will continue to be a topic of interest and debate.
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