Under the arrangement, TikTok’s global operations will run out of a new U.S. headquarters. Its Chinese parent company, ByteDance, will retain a majority stake of the company. The Trump administration could approve the deal as early as Tuesday. (Financial Times, CNBC)
Talking point: This is a different arrangement than what Oracle and ByteDance presented to the White House earlier this week. Initially, the proposed deal made Oracle a contractor tasked with handling TikTok’s U.S. data. The software giant will now get a minority stake to process the firm’s data from across the world. ByteDance will retain control over the platform’s algorithm, after Beijing passed a law last month restricting the sale of certain technologies to non-Chinese firms. While the new arrangement still doesn’t comprise a full sale of TikTok, as President Donald Trump had wanted, it complies with recommendations made by the Committee on Foreign Investment, which reviews deals for national security threats.