Here’s what’s happening right now with the US TikTok deal

TechCrunch
TechCrunch
3M ago
177 views
The US government is moving forward with a deal to sell TikTok's operations to American investors, amid ongoing concerns about data security.
Here’s what’s happening right now with the US TikTok deal
A What happened
The US government has taken significant steps towards finalizing a deal for the sale of TikTok's US operations to a consortium of American investors, valuing the platform at around $14 billion. This decision comes after years of controversy surrounding the app's Chinese ownership and concerns about user data potentially being accessed by the Chinese government. President Trump has signed an executive order approving the sale, which includes major investors like Oracle, Silver Lake, and Andreessen Horowitz. The new entity is expected to have an 80% stake held by US investors, with ByteDance retaining a minority share. Oracle is set to manage TikTok's security and user data, ensuring that the platform remains compliant with US laws. However, reports suggest that once the deal is finalized, the existing TikTok app may be discontinued, requiring users to transition to a new platform, the specifics of which remain unclear.
★

Key insights

  • 1

    TikTok's Valuation: The deal values TikTok's US operations at approximately $14 billion.

  • 2

    Investor Consortium: A group including Oracle and other firms is set to manage TikTok's US operations.

  • 3

    Data Security Focus: Oracle will oversee TikTok's security measures to protect user data.

  • 4

    Potential App Discontinuation: Users may need to transition to a new platform after the deal is finalized.

Takeaways

The ongoing negotiations reflect the complex relationship between technology, national security, and user privacy.

Topics

Technology & Innovation Cybersecurity