US and Chinese officials say they have reached an agreement to sell a US version of TikTok to American investors. On Monday, US and Chinese officials announced that they have reached a framework agreement to transfer ownership of the TikTok app to American control, which will be confirmed in a phone call on Friday between US President Donald Trumpand Chinese President Xi Jinping.
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China has said the two sides have reached a “basic framework consensus.” Once again, the revised September 17 deadline appears to be extended to allow for the deal to be finalized. This will be necessary as Congress will need to approve the deal.
The Financial Times reports that the deal includes the licensing of the key Chinese algorithm. Wang Jingtao, deputy head of China’s powerful cybersecurity regulator, told reporters Monday night that U.S. and Chinese officials have agreed on a framework that includes “the licensing of the algorithm and other intellectual property rights.”
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Since that's where the value lies, getting the app without the recommendation algorithm would be pointless. Unlike other apps where users choose what to watch, TikTok simply shows an endless stream of videos it thinks you'll like, quickly learning your preferences.
U.S. Treasury Secretary Scott Bessentseparately told reporters that the spin-off app would be controlled by American investors but would retain some “Chinese features,” according to Reuters. Another person familiar with the matter said TikTok had developed a standalone app for the U.S. pending a deal but wanted to ensure that content created by American users would be available to the app’s “rest of the world” users and vice versa.
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It is not yet clear who will end up owning the app in the US. The deal, which was announced in March and ultimately fell through, involved various US companies holding varying percentages of the equity.
