TikTok deal will give US control of board & algorithm

The United States will complete the TikTok deal with China in the coming days. According to the White House on Saturday, the U.S. will control the algorithm that powers the app’s video feed and Americans will hold six of the seven TikTok board seats.

Algorithm dispute

A key question in the Washington and Beijing dispute has been whether the popular social video platform would keep its algorithm if its Chinese parent company, ByteDance, sells the app.

TikTok’s algorithm decides what users see on the app. American officials have warned the algorithm is vulnerable to manipulation by Chinese authorities, who can use it to influence content on the platform in ways that are difficult to detect.

In a Fox News “Saturday in America” interview, Leavitt said “the algorithm will also be controlled by America as well,” providing further detail on how the White House views the deal taking shape.

Trump’s role in negotiations

Congress approved a TikTok ban in January, but the app has continued operating after President Trump granted four extensions to delay the shutdown while his administration tries to reach an agreement for ByteDance to sell its U.S. operations.

The day after discussing the TikTok deal with China’s President Xi Jinping, Trump told reporters: “We have great American patriots that are buying it — very, very substantial people, people that love our country. And they’re very smart technologically, and they will not let anything bad happen to TikTok.”

President Donald Trump said Rupert Murdoch and his son Lachlan are expected to join a group of investors aiming to acquire TikTok’s U.S. operations. Oracle chairman Larry Ellison and Dell founder Michael Dell are likely to be involved. “I think they’re going to do a really good job,” Trump said, describing the men as “American patriots”.

White House press secretary Leavitt expressed confidence that the agreement would be finalised soon. “We are 100% confident that a deal is done, now that deal just needs to be signed and the president’s team is working with their Chinese counterparts to do just that.”

China’s position remains unclear

After his call with Xi, Trump said that American investors were ready to move forward and that the Chinese leader has been “a gentleman” on the issue. He did not provide details on the crucial question of whether China would control the algorithm.

A statement from the Chinese government following that phone call offered no clarification on Xi’s agreement regarding the sale of a controlling stake by TikTok’s Chinese parent company to prevent a U.S. ban.

National security and data privacy concerns

Leavitt said Trump “recognised the need to protect Americans’ privacy and data while also keeping this app open,” adding that “TikTok is a vital part of our democratic process.”

The Trump administration has pushed for American control of TikTok for a long time, which has over 170 million users in the U.S.

U.S. officials have raised concerns that TikTok’s parent company could share user data with the Chinese government and that the platform’s algorithm might be manipulated by the Chinese government for U.S. users.

Public opinion on a ban

A recent Pew Research Centre survey found that approximately one-third of Americans support a TikTok ban, down from 50% in March 2023. About one-third oppose a ban, while a similar percentage remain unsure.

Among those who said they supported banning the social media platform, around 8 in 10 cited concerns about user data security as a major factor influencing their decision, according to the report.

TikTok’s political impact

Trump has often credited young TikTok users with helping him in the 2024 election. The app’s 170 million U.S. users include many young people – a group that, according to Pew Research, offered more support to the Republican presidential candidate in 2024 than in past elections.

“A lot of people in this country want it to be open,” Trump said on Friday, speaking about TikTok. “If it weren’t open, maybe, I don’t know. I think we won by so much, it wouldn’t have mattered. But we got a lot of votes. We got a lot of Republican votes from very young people.”

The president also referred to his earlier opposition to the app. In 2020, during his first term, Trump moved to use executive authority to ban the app for national security reasons.

“It’s a great deal for all of the young people in the country that wanted it, and people generally. I was happy with it. Look, I wasn’t a fan of TikTok, and then I got to use it, and I became a fan, and it helped me win the election in a landslide,” he said.

TikTok’s U.S. ban timeline

The app was briefly blocked in the U.S. in January, just days before President Trump began his second term, under a bipartisan law passed the previous year and signed by then-President Joe Biden that required the app to be sold to a U.S. company.

Before taking office, Trump promised he wouldn’t enforce the penalties stipulated under that law if TikTok continued operating in the U.S. He has since used multiple executive orders to extend the temporary reprieve for TikTok.

Market impact

Analysts say the TikTok deal could influence the share prices of companies involved, including Oracle and Dell. Investor sentiment may also be affected by news of Rupert Murdoch and Lachlan Murdoch’s potential participation. Uncertainty over China’s final position could create volatility in the broader tech sector, especially for firms with U.S.–China exposure.

결론

TikTok’s US operations have been valued at approximately $35 billion to $40 billion, though tech valuations have climbed rapidly with the AI boom.

To allow more time to complete a sale, Trump extended the deadline for ByteDance to divest for another three months to Dec. 16, the fourth such reprieve he has granted since taking office. Those extensions face legal uncertainty, as the 2024 law permits only one.

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