The United States and China have successfully concluded negotiations to transfer the majority ownership of TikTok's American operations to new proprietors, as disclosed by Treasury Secretary Scott Bessent on Sunday.
This development marks a significant resolution to the ongoing debate over the app's connections to the Chinese Communist Party, a matter that has raised national security alarms in the United States.
According to Breitbart, the agreement was announced by Bessent during an appearance on CBS News Face the Nation. He revealed that President Donald Trump and Chinese leader Xi Jinping are set to formalize the deal during their forthcoming meeting in Busan, South Korea.
This pivotal agreement aligns with President Trump's executive order issued last month, which stipulated that ByteDance, TikTok's parent company with ties to the Chinese government, would reduce its ownership to less than 20 percent. The remaining 80 percent stake will be acquired by "certain investors," in compliance with legislation enacted by Congress and signed into law by former President Joe Biden, mandating TikTok's divestment from its Chinese proprietors.
While Bessent refrained from divulging intricate details of the agreement, he underscored his role in securing China's consent for the transaction, a task he believes has been accomplished in recent days. The Treasury Secretary also alluded to the involvement of influential figures such as Oracle co-founder Larry Ellison, tech magnate Michael Dell, and News Corp Chairman Emeritus Rupert Murdoch, as previously noted by President Trump.
Vice President JD Vance, as reported by Breitbart News, identified the primary investors in the American consortium poised to take control of TikTok. The deal outlines the establishment of a new joint venture to manage TikTok's U.S. operations, with ByteDance retaining a minority stake of less than 20 percent.
The principal investors include Oracle, private equity firm Silver Lake, and Abu Dhabi investment fund MGX. President Trump has also mentioned the participation of media mogul Rupert Murdoch and tech entrepreneur Michael Dell in the acquisition group.
A critical component of the agreement involves ByteDance leasing its algorithm to the new U.S. entity, with Oracle responsible for retraining it. Furthermore, Oracle will oversee a secure cloud infrastructure to house U.S. users' data, implementing stringent controls to prevent foreign access.
This measure aims to address persistent concerns regarding the control of TikTok's sophisticated recommendation software and the associated security and data privacy risks.
The finalization of this deal represents a significant stride in safeguarding American interests while addressing the complexities of international business relations.
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