TikTok Chinese company, has been at the center of a dispute in the United States for four years, owned by the Bidens, because now, because of concerns about the user data that the Chinese administration has access to.
As a result, American users have often found themselves caught between this friction. Earlier this year, the United States app received a temporary closure, with millions of users left in excitement before they were quickly restored. In February, the TikTok app returned to the App Store and Google Play Store.
Investor Competition And Executive Order
Several investors are competing for the chance to purchase the app, and after Trump prolonged the TikTok ban deadline for the fourth time, it appears that progress has been made. On Thursday, President Donald Trump signed an executive order that authorizes the sale of TikTok’s U.S. operations to an American investor group.
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The deal would estimate TikTok U.S. at about $14 billion, according to Vice President JD Vance. CFRA Research’s senior vice president, Angelo Zino, previously predicted that, if an agreement were to happen, the platform’s U.S. business could have its valuation climb to upward of $60 billion.
Chinese Approval And Framework Deal
A week earlier, President Trump announced that President Xi Jinping of China had granted his endorsement of a TikTok deal, which would permit a consortium of U.S. investors to control the platform. ByteDance declared publicly that it would guarantee the platform remains accessible to American users.
Recently, a framework deal was reportedly formed between the U.S. and China, with new details indicating that a consortium of investors, including Oracle, Silver Lake, and Andreessen Horowitz, may supervise TikTok’s U.S. operations.
Stake Distribution And Board Composition
These investors are expected to hold an 80 percent stake, and the remaining shares will belong to Chinese stakeholders. The new entity’s board would largely consist of U.S. members, with one member appointed by the U.S. government. Last weekend, Trump stated in a Fox interview that Rupert Murdoch and his son Lachlan are probably going to take part, along with Oracle’s executive chairman Larry Ellison and Dell Technologies CEO Michael Dell.
Security Role Of Oracle
Oracle is likely to manage the app’s security and safety measures. The company already supplies cloud services for TikTok and handles user data in the U.S. Notably, Oracle previously proposed TikTok back in 2020.
Additionally, as part of the proposed arrangement, Oracle would duplicate and protect a new U.S. version of the algorithm, according to a White House official. The U.S.-based TikTok owners could lease the algorithm from ByteDance, which Oracle will then retrain. ByteDance will not have access to information about TikTok’s U.S. users or any influence over the U.S. algorithm.
Transition To A New Platform
However, Bloomberg’s reports show that when the agreement was completed, TikTok was given to the United States, but the details of this platform are largely uncertain, including its properties and how it will be different from the original app. To understand this high-current situation, it helps to look at TikTok’s turbulent relationships with the US government, resulting in various legal conflicts and conversations.
Timeline Of Legal Battles
The conflict first began in August 2020, when Trump signed an executive order to forbid transactions with parent company ByteDance. A month later, Trump’s administration attempted to compel a sale of TikTok’s U.S. operations to a U.S.-based company. The leading contenders included Microsoft, Oracle, and Walmart.
However, a U.S. judge temporarily blocked Trump’s executive order, permitting TikTok to continue operating while the legal dispute evolved. Things began to move forward even more last year following the change to the Biden administration. After the Senate approved the bill against TikTok, President Joe Biden signed it.
Lawsuit And Constitutional Arguments
In response, TikTok sued the US government, challenged the validity of the ban, and argued for the app and its US users to offend their First change rights. The company has constantly denied that it presents a security threat and says the US ITS data is stored in accordance with all local rules.
Shifting Ownership Plans
Fast-forward to today: Trump has had a change of heart since his first term and is trying to accomplish a 50-50 ownership arrangement between ByteDance and a U.S. company. There have been several bidders, including The People’s Bid for TikTok, a consortium organized by Project Liberty founder Frank McCourt.
This group has the backing of investment firm Guggenheim Securities and the law firm Kirkland & Ellis. Supporters include Reddit co-founder Alexis Ohanian, TV personality and investor Kevin O’Leary, inventor of the World Wide Web Tim Berners-Lee, and senior research scientist David Clark.
Other Bidders
Another group called the American Investor Consortium is led by Employer.com founder Jesse Tinsley and includes Roblox co-founder David Baszucki, Anchorage Digital co-founder Nathan McCauley, and famous YouTuber MrBeast. Others in the running included Amazon, AppLovin, Microsoft, Perplexity AI, Rumble, Walmart, Zoop, former Activision CEO Bobby Kotick, and former U.S. Treasury Secretary Steven Mnuchin.
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