White House press secretary Karoline Leavitt says that a deal is reached between the U.S. and China where TikTok’s algorithm and data are controlled by America and are majority-owned by Americans in the United States.
Mike Campbell | Nurphoto | Getty Images
A preliminary deal to keep TikTok alive in the United States will not involve the federal government taking an equity stake or a “golden share” in the social media company, a senior White House official said Monday.
The official confirmed that the deal will base the popular video app’s U.S. operations in the states as part of a new joint venture with a board of directors that will have a majority of American members.
Tech giant Oracle will oversee its security operations, the official said during a call with reporters.
Since President Donald Trump took office in January, the United States government has secured a golden share in U.S. Steel and taken an equity stake in Intel. A golden share effectively gives Trump veto power over key business decisions at the company.
ByteDance, TikTok’s Chinese parent company, faces an ultimatum under a federal law requiring it to either divest the platform’s American business or be shut down in the U.S. That law passed with bipartisan support from members of Congress who expressed national security concerns about the app and its potent content algorithm.
Trump, who says he likes TikTok, has repeatedly extended the divest-or-ban deadline. Last week, he signed an executive order delaying it until Dec. 16.
This is breaking news. Please check back for updates.
