Amidst the ever increasing deadlines, the decision has finally been taken to sell TikTok in America. This short video platform of Chinese company ByteDance will be bought by an investor group led by Oracle. This deal is expected to happen on January 22. After the sale of TikTok, most of its shares will go to American investors, while ByteDance’s stake will come down to about 20 percent.
Why did TikTok have to be sold?
America had banned TikTok, calling it a threat to national security. America said that through TikTok, the Chinese company is collecting data of American citizens, which the Chinese government can use. After this, Donald Trump had set a condition for the operation of TikTok that if it is sold to an American company, then there will be no danger of it being banned.
Now the deal is going to happen
TikTok’s parent company ByteDance has signed a binding agreement with a group of US and global investors to sell it. TikTok CEO Shou Zi Chew has confirmed this. Under this deal, 50 percent ownership of TikTok will go to Oracle, Silver Lake and Abu Dhabi based firm MGX. ByteDance will hold 19.9 percent stake in it, while the remaining shares will be with the existing investors of ByteDance.
Expected to reach a deal on January 22
According to reports, this deal will be completed on January 22. After the deal, TikTok’s recommendation algorithm will go to Oracle. TikTok says that American users will not face any problem with this transaction and the platform will continue to run smoothly for them. At the same time, the rules may be a bit strict for the employees and they may have to come to work in the office from next year.
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