TikTok’s Future in the U.S.: Progress Toward Majority American Ownership
In a significant development for TikTok, White House Press Secretary Karoline Leavitt announced that an agreement has been reached for the app’s U.S. operations to be spun out under majority American ownership. While not yet signed, this agreement signals a pivotal shift in the platform’s governance.
Key Details of the Agreement
Leavitt stated that Americans will control six out of seven board seats in the restructured TikTok. This change aims to ensure the app’s algorithm is managed domestically, giving U.S. stakeholders greater influence over its operations.
Timeline for Finalization
“So all of those details have already been agreed upon, now we just need this deal to be signed,” Leavitt added, expressing optimism that the formal agreement will occur soon.
New Investors and Ownership Structure
According to Bloomberg, new investors in the restructured TikTok will include major industry players such as Oracle, Andreessen Horowitz, and Silver Lake Management. Oracle is slated to oversee the app’s security and safety protocols. Notably, the current owner, ByteDance, is expected to retain less than 20% of the newly formed entity.
Political Context and Oversight
The move comes amidst ongoing scrutiny regarding national security concerns tied to TikTok’s Chinese ownership. Former President Donald Trump previously extended a deadline for a U.S. bill that mandates the sale of TikTok to new owners, emphasizing the importance of national security in this decision-making process. Reports indicate that China’s President Xi Jinping has approved the deal, paving the way for its potential success.
Conclusion
The impending shift to majority American ownership of TikTok signifies a notable change in how social media platforms may operate and be regulated in the U.S. The agreement, if finalized, could also address key national security concerns and involve well-established investors in the tech industry.
Related Keywords: TikTok ownership, American investors, White House Press Secretary, TikTok algorithm, national security, Oracle investment, ByteDance ownership
