Photo Credit: David Everett Strickler
The White House has taken billions from prospective TikTok investors for the privilege, but they won’t be taking an equity share in US-based TikTok.
While White House press secretary Karoline Leavitt says the Trump administration has reached a deal with China over TikTok’s algorithm and future in the United States, the wrinkles are still being smoothed out.
The U.S. government has facilitated the deal to amass a group of American investors to control the U.S.-based version of the popular short-form video sharing app. But none of the new entity’s board members will be selected by the government, Leavitt confirmed.
Later this week, President Trump will sign an executive order backing the proposed deal, which will once again extend the deadline by which TikTok could face a U.S. ban. Trump and his team have expressed confidence that Chinese President Xi Jinping has approved the deal, and signatures to finalize it are forthcoming.
It’s unusual for the U.S. government to be paid for its involvement in private sector deals. But potential investors in the new American version of TikTok have paid the government “billions” for the privilege of consideration. Therefore, it’s noteworthy that the federal government will not be taking an equity stake or a “golden share” in the social media company.
The deal will see the popular platform’s U.S. operations turned over to an American-based entity, with a board of directors containing a majority of American members. TikTok’s Chinese parent company ByteDance will hold one seat, according to officials.
Investors will include tech giant Oracle, which will oversee American TikTok’s security operations; Silver Lake; Andreessen Horowitz; and potentially media moguls Rupert and Lachlan Murdoch; as well as Michael Dell, CEO of Dell Technologies.
The potential involvement of the Murdochs and their Fox Corporation has definitely raised some eyebrows, leaving many wondering what the future of TikTok in the U.S. will look like. Keep watching this space for more updates as details continue to unfold.
