Trump announces Chinese leader's approval of TikTok arrangement
The future of the popular video-sharing app TikTok in the United States has been a topic of much discussion for months. President Donald Trump granted an additional grace period for TikTok's operation in the US, which he later extended several times.
According to reports, a potential deal could see US investors taking over a significant portion of TikTok's US business. The US investors holding 80 percent of the new US subsidiary of TikTok are Oracle, Silver Lake, and Andreessen Horowitz. This development was welcomed by Trump, who stated that American investors would take over the US business of TikTok.
The deal, if it goes through, could have political implications. Mark Zuckerberg, the founder of Meta (parent company of Facebook and Instagram), has reportedly moved closer to the Republicans politically, while tech billionaire Elon Musk, a former Trump ally, has taken over a different online platform. This could potentially bring another online platform in the US under the financial influence of entrepreneurs likely sympathetic to the right-wing political camp around Trump.
However, the remaining 20% of the new US subsidiary would remain with Chinese shareholders. Bytedance, the parent company of TikTok, is headquartered in Beijing and is subject to many Chinese regulations. Chinese President Xi Jinping has agreed to a deal over the video app TikTok, according to Donald Trump.
Bytedance's founders, including Zhang Yiming, hold a 20% stake in the company but reportedly have control due to shares with more voting rights. The company is 60% owned by international investors, which could help ease concerns about the app's ties to China.
Despite the ongoing negotiations, TikTok continues to operate in the US, with over 170 million users. The app's future in the US has been a potential months-long ban, as per a law passed last year. However, there is no impact on the operation of TikTok outside the US, such as in Germany, due to the ongoing situation.
Oracle, backed by Trump supporter Larry Ellison, is set to retain its role as TikTok's technical service provider in the US. The future of TikTok in the US remains uncertain, but the progress of the deal suggests a resolution may be in sight.
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