Trump announces Chinese leader's approval for TikTok agreement
In a significant development, the future of the popular video-sharing app TikTok in the United States has taken a step forward. According to former President Donald Trump, the deal is "doing well" and "investors are getting ready."
The US-based investors, including Oracle, Silver Lake, and Andreessen Horowitz, are set to hold 80% of a new US subsidiary of TikTok. This move could bring another online platform under the financial influence of entrepreneurs sympathetic to the right-wing political camp around Trump. Notably, Oracle, led by Trump supporter Larry Ellison, will continue to serve as a technical service provider for TikTok in the US.
The US government has spoken of a basic agreement on the future of TikTok in the US, which has been uncertain for months due to potential bans. The deal is also expected to prevent Chinese influence over the app, as assured by Trump.
Chinese President Xi Jinping has reportedly agreed to a deal over TikTok. However, Bytedance, TikTok's parent company, based in Beijing, remains bound by many Chinese regulations. Bytedance is 60% owned by international investors and is based in the Cayman Islands, which has no impact on the operation of TikTok outside the US, such as in Germany.
Meanwhile, the future of TikTok in the US involves Chinese shareholders retaining the remaining 20% of the new US subsidiary. The deal is expected to generate several billion dollars for the US government, as reported by the Wall Street Journal, as part of the transaction.
Elon Musk, another tech billionaire, has taken over Twitter, now known as X, and right-wing political voices have become more prominent on the platform. Mark Zuckerberg, founder of Meta (which includes Facebook and Instagram), has also moved politically closer to the Republicans.
It's important to note that the operation of TikTok remains unchanged for its over 170 million users in the US, ensuring the continuity of the popular app in the country. The deal is a significant development in the tech industry and the political landscape of the United States.
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