"The first thing to understand about the TikTok deal is that it's not actually a deal-at least not in any official capacity yet. Trump's executive order Thursday simply delays the Chinese social media app from being banned in the U.S. (as required by a law passed in the spring of 2024) for another 120 days, while the various parties seek to finalize an agreement."
"According to the White House, the portion of the TikTok service that currently serves U.S. residents will be divested from Chinese parent company ByteDance. A new, separate "American TikTok" will be created and placed under the control of a joint venture that's "majority-owned and controlled by United States persons." All user data for this app will be stored in U.S. data centers operated by Oracle (a practice that actually began in 2022 in response to U.S. concerns), thus ensuring the privacy and security of Americans' data. The joint venture will also be responsible for overseeing the algorithm that picks which video clips appear in users' feeds"
The executive order postpones a U.S. ban on TikTok for 120 days to allow parties to finalize a new arrangement. The plan calls for divesting the portion of the service serving U.S. residents from ByteDance and creating a separate "American TikTok" under a joint venture majority-owned and controlled by U.S. persons. User data will be stored in U.S. data centers run by Oracle. The joint venture will oversee the recommendation algorithm, which will continue to serve Americans with some form of oversight and "retraining." The arrangement creates financial opportunities for involved parties and differs from prior expectations.
Read at Fortune
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