Tik Tok in US has been in discussion where US want their stakeholders to move more share in it so as to control their data security. US is therefore anticipating to have negotiations with China on transfer of this ownership. The US is giving these orals to investors like Oracle, Silver Lake and Andreessen Horowitz. Oracle is to manage data privacy, backup US data and other cloud services. This is a move to keep US data secure and separate from China.
The deal is therefore to create a tiktok based US version. ByteDance is a parent company in China oversees its data security in Tik Tok. ByteDance is therefore expected to lower its stake below 20% in order to meet US security laws that require foreign companies to step back from control so that they can take over. It’s business in US is valued between $35 billion to $40 billion.
The exact price to be invested by the investors has not been disclosed yet. This deal between US and China is called Project Texas and it’s has also been seen as a way of reducing political tensions between US and China. It has become very vital in trade talks and without an agreement the app could be totally banned in US as a measure of regulating security.
Tik Tok agreement is important to the US residents and government but without control of its security it will be banned and residents won’t be able to use it. About 170 million of US residents are Tik Tok users and therefore if the investors are to have the control of Tik Tok then the people can continue to use the app. This move also means that ByteDance will lose its control in oversee assets, but this will help settle its dispute with Washington and secure TikTok market in America.
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