Tiktok owners' largest non-Chinese investor seems most likely to acquire the short video app's operations in the U.S.
Reuters said a plan by the White House is to target these investors in the parent company to raise their ante and get a brief video app for the U.S. business, citing two sources familiar with the negotiations.
The plan requires the removal of a U.S. entity to be provided for Tiktok and dilute Chinese ownership in the new business to a 20% threshold required by U.S. law. Sources said this would help the app avoid an imminent U.S. ban as they were asked to remain anonymous because they did not have the right to record the speech under the record.
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Jeff Yass Susquehanna International Group With Bill Ford Atlantic GeneralBoth are on the BODEDANCE board of directors, sources said, and are discussing with the planned White House.
Private equity firm KKR is also participating, a source said.
Since almost half of one Americans use the fate of a short video app since Laws take effect on January 19, requiring sales or facing injunctions On national security reasons.
China Impact Plan, Data Storage
The law passed by bipartisan support last year reflects Washington’s concerns that Tiktok’s ownership has caused it to the Chinese government, and Beijing can use the app to influence the United States.
Free speech advocates believe the ban illegally threatens to restrict Americans from violating the First Amendment to the U.S. Constitution and restrict Americans from entering foreign media.
The company said U.S. officials misunderstood their connections to China, believing that its content recommendation engine and user data are stored on cloud servers operated by Oracle on cloud servers, and that content review decisions affecting U.S. users have also been made in the United States.
The source added that under the plans proposed by existing investors, software giant Oracle will continue to fill in U.S. user data and guarantee data cannot be accessed from China.
Representatives for Tiktok, Bytedance, Susquehanna, Oracle and White House were unable to comment immediately.
Atlantic General and KKR declined to comment.
The Financial Times reported last Friday American Piece Investors Are Seeking to Acquire Chinese Investors In a proposed agreement to rotate Tiktok's U.S. operations, investment company Coatue is named another existing investor involved in the talks. It says oracle may also require a small collection.
Coatue did not immediately respond to a request for comment.
U.S. President Donald Trump issued an executive order shortly after taking office, postponing the enforcement of the law until April 5, and said he could further extend the deadline to give himself time to the agreement.
According to a legal application from Tiktok last year, global investors own about 58% of orcs, while the company's Singapore-based Chinese founder Zhang Yiming has another 21% and employees of different nationalities, including 7,000 Americans, own 21%.
The White House has effectively played the role of investment banks in the transaction negotiations that are closely watched.
Save Tiktok plan
Trump initially supported the establishment of the ban during his first term, but in recent months promised to “save tiktok” and keep the app alive in the United States to help him win the 2024 presidential election.
The app briefly turned black and then signed an executive order online shortly after Trump's inauguration, delaying the ban by 75 days.
Trump said earlier this month that his administration is Four different groups About the expected Tiktok transaction without confirmation.
Others fighting for the app include an investor group led by billionaire Frank McCourt, another involving Jimmy Donaldson, especially YouTube star Mr. Beast.
Reuters and others reported in January that the Trump administration is developing a plan for Tiktok that will involve hitting Oracle and some existing hostile investors to control the operation of the app.
According to the expected transaction, BYTEDANCE will retain shares in the company, but data collection and software updates will be supervised by Oracle, which has provided the foundation for Tiktok's infrastructure under Trump's first semester negotiations.
- Jim Pollard's Extra Input and Editing by Reuters
See also:
Tiktok to invest $3.8 billion in data centers in Thailand
Bidding is rushing to Tiktok when Americans scramble to get the app
Bytedance's plan to have an AI infrastructure plan of $20 billion this year.
The United States' “Tiktok refugees” flock to new Chinese applications
In Trump's 50% ownership proposal for Tiktok
The forced sale of Tiktok in the United States is about security, not freedom of speech.
'China does not allow it': Tiktok compares divest with chip ban
Nearly half of Generation Z hope Tiktok never invented: American polls
