PTV Network
World21 DAYS AGO

ByteDance to hold one board seat in proposed TikTok US ownership deal

A 3D-printed miniature model of US President Donald Trump and TikTok logo are seen in this illustration. (Reuters)

A 3D-printed miniature model of US President Donald Trump and TikTok logo are seen in this illustration. (Reuters)

WASHINGTON: A US-China agreement sets out new governance for TikTok’s US operations, giving Chinese owner ByteDance one of seven board seats while Americans hold the majority.


The deal, aimed at avoiding a US ban on TikTok, requires TikTok’s US assets to be majority-owned by American investors and data to be stored domestically. The algorithm will be retrained and controlled independently from ByteDance, with oversight by US authorities.


A senior White House official said China’s ByteDance will have one of seven board seats for TikTok’s US operations under a new agreement, while six seats will be held by Americans.


Trump extends pause on ban 

President Donald Trump is working to prevent a ban on TikTok in the US, which was mandated by a 2024 law requiring the company to sell its US assets by January 2025. Enforcement of the law has been delayed until mid-December as talks continue to separate TikTok’s US business from its global platform, secure American investors, and meet the full divestiture criteria outlined in the law.


This week’s progress marks a significant development in lengthy negotiations between the US and China, who have sought to ease a broader trade war affecting global markets. Trump said after a phone call with Chinese President Xi Jinping that they made headway on the TikTok deal and planned to meet in person within six weeks. However, Beijing’s statements have not clarified the extent of the progress.


The White House official said Trump intends to extend the enforcement pause for an additional 120 days, making April the new deadline for finalising the deal. TikTok did not immediately respond to requests for comment.


American concerns

Some US lawmakers remain wary. Representative Frank Pallone, a Democrat, said: “The devil will be in the details. We cannot allow China continued access to massive amounts of Americans’ personal data... and we cannot allow Trump to hand TikTok over to his tech bro buddies and turn it into a MAGA mouthpiece.”


It is unclear if the current deal satisfies the full divestiture requirements stipulated by Congress in 2024.


Under the agreement, data for American users will be stored on US cloud infrastructure managed by Oracle, a US software firm. The TikTok algorithm “will be secured, retrained and operated in the United States outside of ByteDance’s control.” The algorithm will be rebuilt from scratch using only US data under US supervision.


US officials have been concerned that the algorithm could be used by China to influence the content Americans see on TikTok. Reports suggest the algorithm’s licence may remain with ByteDance, but its operation will be under strict US control.


US users will still be able to access content from around the world on TikTok.


TikTok’s US assets will be majority-owned by American investors and overseen by a board staffed with national security and cybersecurity experts.


ByteDance’s shareholders include Susquehanna International Group, General Atlantic, and KKR. ByteDance itself would hold less than 20% ownership in the joint venture overseeing TikTok’s US operations.