TikTok's Big Change: Who's Really in Control?

The White House has revealed that Oracle will oversee TikTok's algorithm once the deal goes through. This is a significant development, as the algorithm is both the key to TikTok's popularity and the source of national security concerns.

The Deal in Detail

• New Ownership Structure: TikTok's US operations will be transferred to a new entity primarily owned by American investors, including Oracle and Silver Lake. ByteDance, TikTok's parent company, will retain a minority stake of less than 20%.
• Pending Approvals: While the White House is confident the deal will proceed, it still requires approval from Chinese authorities.
• Algorithm Oversight: The new owners will receive a copy of the algorithm, review it, and train it using US user data. Oracle will monitor its functionality to address security concerns.

National Security Concerns

US officials have long been worried that ByteDance could be compelled to alter the algorithm to influence American users. The new ownership structure aims to mitigate these risks by placing control in US hands.

Financial Implications

The deal is expected to be worth billions, and the White House is still determining whether it will charge a fee for facilitating the transaction.

Oracle's Leadership Changes

Oracle's CEO, Safra Catz, is stepping down to become vice chair. While the reason for this shift is unclear, it could indicate her involvement in the new TikTok ownership group.