TikTok U.S. Ownership Talks Focus on ByteDance Investors and Oracle as Deadline Nears
Negotiations aim to reduce Chinese ownership below 20% and secure U.S. user data, but legal, legislative, and algorithm challenges persist ahead of April 5 deadline.
- The White House is leading discussions to spin off TikTok's U.S. operations, with Oracle and existing U.S.-based ByteDance investors central to the proposed deal.
- The plan seeks to dilute Chinese ownership in TikTok's U.S. entity to below 20%, in compliance with U.S. law, while Oracle would house U.S. user data to mitigate security concerns.
- China has refused to sell TikTok's recommendation algorithm, a key sticking point in negotiations and a potential obstacle to finalizing the deal.
- Some lawmakers, including Senator Tom Cotton, oppose any agreement that does not fully divest Chinese control, raising doubts about congressional approval.
- Potential investors are wary of significant legal liabilities if the deal fails to meet legislative standards, complicating efforts to secure commitments before the April 5 deadline.
New York Post 