Emerging TikTok Deal Grants US Control Over Algorithm and Board, Averting Ban
An emerging TikTok deal grants US companies control over the app's algorithm and board, with Oracle managing data, aiming to avert a Congressional ban.
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Overview
- An emerging deal for TikTok's U.S. operations aims to avert a Congressional ban set for January, which mandates Bytedance sell its U.S. assets.
- The proposed deal grants U.S. companies control over TikTok's algorithm and a majority of board seats, specifically six out of seven, ensuring American oversight.
- Oracle is slated to be responsible for the data and security of the TikTok app, committing to store all American user data domestically under the new arrangement.
- President Trump's orders enabled TikTok's US operation, as discussions with Chinese President Xi Jinping continue regarding the platform's future and deal approval.
- Despite White House assertions of US control, China has not officially approved the deal, with Xi Jinping advocating for a fair business environment amid shifting public opinion.
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Analysis
Center-leaning sources cover the emerging TikTok deal by primarily reporting official statements from the U.S. administration. They maintain neutrality by presenting both the White House's optimistic outlook on U.S. control and acknowledging the Chinese government's differing tone and Trump's own vagueness on key details, avoiding loaded language or overt editorial endorsement of either side's claims.
"Leavitt said Americans will hold six of seven board seats in the restructured TikTok, and the short-form video app’s algorithm will be U.S.-controlled, according to Bloomberg."
TechCrunch"This deal does put America first, and let me just be very clear, this deal means that TikTok will be majority-owned by Americans in the United States."
NBC News"Leavitt expressed confidence that the agreement would be finalized soon."
Chicago Tribune"Leavitt expressed confidence that the agreement would be finalized soon."
Associated Press"A deal in the works between the U.S. and China over the ownership of TikTok could include a licensing agreement for the closely guarded secret of the social media company's algorithm, to which access has proved a major sticking point in negotiations between the countries."
CBS News"A deal doesn’t feel imminent."
Gizmodo"The two countries have been working on a way to save TikTok’s U.S. business, after TikTok was banned in January over national security concerns."
TechCrunch"Trump hailed progress over trade and a TikTok deal after his highly-anticipated phone call with Chinese leader Xi Jinping on Friday."
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FAQ
U.S. companies will control TikTok's algorithm and hold a majority of board seats, with six out of seven seats, ensuring American oversight over the platform.
Oracle will manage TikTok's U.S. user data and cloud infrastructure, storing all American user data domestically and overseeing data and security. Oracle engineers will audit TikTok's source code and algorithms to ensure U.S. data privacy and security compliance.
The deal aims to avert a Congressional ban by ensuring TikTok complies with U.S. national security concerns about foreign access to data, mandated by legislation that requires ByteDance to divest its U.S. assets. Oracle’s role addresses risks under regulations such as PAFACA by protecting American user data from potential Chinese government influence.
No, China has not officially approved the deal yet. Chinese President Xi Jinping advocates for a fair business environment while public opinion and ongoing trade discussions influence the process.
The takeover of TikTok's U.S. operations by U.S. firms is expected to take around 30 to 45 days, with Oracle retaining its role managing data collection and software updates during the transition.
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