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ByteDance changes its mind to sell the American part of the TikTok business
Chinese company ByteDance has postponed the sale of American business TikTok to a group of companies led by Oracle, indefinitely. According to a source who wished to remain anonymous, the only purpose of the deal was to satisfy Trump’s demands to continue doing business in the United States. Deal lost its meaning after Trump stepped down as president.
According to a source interviewed by the South China Morning Post, one of the founders of Oracle was a Trump supporter, so selling TikTok to this particular group of companies would benefit ByteDance. However, the fact that the previous president was not re-elected made the deal meaningless. However, ByteDance is still in talks with the US government, however, a reliable source from Chinese regulators reports that the country’s government has developed certain rules that must be taken into account in the event of a sale of TikTok.
First of all, attention is focused on the fact that ByteDance cannot transfer the algorithms underlying TikTok to the USA. According to new Chinese legislation, the sale of any software algorithms developed in the country must be approved by the regulatory authorities. According to the second rule of the deal, the sale of TikTok cannot be considered a “bowing of the knees” to the US government, as it could serve as a bad example for other Chinese companies.
Recall that under the terms of the deal with a group of companies led by Oracle, ByteDance was supposed to register an American company called TikTok Global, selling a 20 percent stake in its capital and retaining the remaining 80 percent. The deal would not entail the transfer of the algorithms underlying the social network, but would allow Oracle to revise the security of the TikTok source code.
By the way, in 2021, TikTok was banned in India, along with 58 other Chinese apps, for reasons of national security. As for the fate of the service in the United States, the administration of the newly elected President of the country, Joe Biden, is currently conducting an investigation that will determine it.