{"id":50559,"date":"2025-12-24T20:39:45","date_gmt":"2025-12-25T01:39:45","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=50559"},"modified":"2025-12-24T20:39:45","modified_gmt":"2025-12-25T01:39:45","slug":"tiktok-spin-off-deal","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2025\/12\/24\/tiktok-spin-off-deal\/","title":{"rendered":"TikTok Spin Off Deal"},"content":{"rendered":"

Clare Duffy<\/a> (Reddit<\/a>):<\/p>\n

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TikTok has signed the deal backed by President Donald Trump<\/a> to spin off its US assets to create a new entity with a group of mostly American investors, CEO Shou Chew told employees in a memo Thursday.<\/p>\n

Although the transaction is not yet complete, the move brings TikTok one step closer to securing its long-term future in the United States. It comes after a law passed last year required that the US version of the app be spun off from its parent company, ByteDance, or be banned in the United States.<\/p>\n

[…]<\/p>\n

Under the agreement, the US TikTok app will be controlled by a new joint venture, 50% of which will be owned by a consortium of investors comprised of tech company Oracle, private equity firm Silver Lake and Emirati-backed investment firm MGX. Just over 30% of the joint venture will be held by “affiliates of certain existing investors in ByteDance” and 19.9% will be retained by ByteDance, according to Chew’s memo.<\/p>\n<\/blockquote>\n\n

John Gruber<\/a> (Mastodon<\/a>):<\/p>\n

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The craziest aspect of this whole saga is that TikTok has been operating illegally since Trump took office<\/a>.<\/p>\n<\/blockquote>\n\n

Nick Heer<\/a>:<\/p>\n

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Oracle is among the companies illegally supporting TikTok<\/a> for the past year, along with Apple and Google. Instead of facing stiff legal penalties<\/a>, Oracle will get to own a 15% piece of TikTok.<\/p>\n<\/blockquote>\n\n

Karl Bode<\/a> (Hacker News<\/a>):<\/p>\n

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The deal purportedly involves “retraining the content recommendation algorithm on U.S. user data to ensure the content feed is free from outside manipulation,” but given you can’t trust any of the companies involved, the Trump administration, or what’s left of U.S. regulators, that means absolutely nothing. Oracle will be “overseeing data protection,” but that means nothing as well given Oracle is run by an authoritarian-enabling billionaire with a long history<\/a> of his own privacy abuses<\/a>.<\/p>\n

Also, this seems to ignore that three years ago, during the Biden administration, it was already announced that Oracle was overseeing TikTok’s algorithms and data protection<\/a>. It’s kinda weird that everyone seems to have forgotten that. This is all, more or less, what was already agreed to years ago.<\/p>\n<\/blockquote>\n\n

Nick Heer<\/a>:<\/p>\n

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There is a kind of implied for now<\/em> which should be tacked onto the end of its impact on Canadians. This U.S.-specific version lays the groundwork for a political wedge issue in Canada and elsewhere<\/a>: should people use the version of the app run by a company headquartered in Beijing and mostly owned<\/a> by a mix of American, Chinese, and Emirati investors, or should they use the app run by a company based in the U.S and mostly owned<\/a> by a mix of American, Chinese, and Emirati investors? Or, to frame it in more politically expedient terms, should people be allowed to use the “Chinese” app or should they be pushed into the “American” app? Under that framing, I would not be surprised to see the U.S. version become the dominant client for TikTok worldwide.<\/p>\n<\/blockquote>\n\n

Previously:<\/p>\n