Recent communications suggest that ex-President Trump is gradually advancing toward his objective of ruling all media and dominating every performance space. He alluded to a crucial trade assembly between the United States and China on a digital platform this Monday, expressing that the discussions had progressed exceptionally well and are nearing their conclusion.
A resolution about a particular business—an enterprise that holds immense interest and appeal for the younger demographic in the United States—was revealed to be part of these discussions. With anticipation building for a phone call with Chinese President Xi, the consensus is positive, and relations between the countries seem to be solid. Scott Bessent, the Treasury Secretary under Trump’s administration, has suggested the outline of an agreement with TikTok, although similar language has been utilized many times before.
In the negotiations that Trump held with China over the preceding months, the disparity between a ‘framework’ and a ‘deal’ became quite apparent. Nevertheless, many consider this arrangement to be an improvement from previous ‘handshake agreement’ that transpired back in June. Everyone is now waiting to find out if Trump and Bessent will finally secure that elusive deal with China about the precious earth minerals crucial for US tech companies to produce their innovative AI chips, airplanes, and advanced tech gadgets by the end of this week.
Market rumors suggest a potential sale of TikTok to Oracle, a tech giant led by Trump’s close friend and known ally, Larry Ellison, in conjunction with select private equity firms. It may sound familiar, as Larry Ellison’s son, David, recently took over as chairman and CEO of Paramount following the company’s merger with Skydance, the family’s own business.
This father-son duo, famous for their support of the Republican Party, have now seemingly set their sights higher. Reports emerging hint at ongoing negotiations with Warner Brothers Discovery, the parent organization of the CNN network, for a potential acquisition.
It seems that Trump has desired to bring TikTok under US administration as a long-term goal. Trump had previously voiced strong objection towards the platform due to concerns about potential espionage activities by Chinese agents. In response, legislators enacted a law requiring algorithmic control of the application by a United States-based firm or face a ban.
It is crucial to note, however, that TikTok has no actual ties to the Chinese government. Indeed, a Chinese entrepreneur founded the platform and is still actively involved in its operations, but the business was never officially established in China. Additional scrutiny has yet to reveal concrete proof of user data being accessed by the Chinese government or its misuse for spying activities.
In reality, ByteDance Ltd owns TikTok, with its headquarters located in the Cayman Islands. TikTok Inc manages its operational activities from offices in Los Angeles and Singapore. Its unique algorithm is maintained and distributed by servers based out of Virginia. At present, foreign institutional investors own the majority stake (60%) in ByteDance. The founder, Zhang Yiming, owns a 20% stake, with employees holding an equivalent share.
Despite the aforementioned facts, Congress chose to proceed with the ban on the application, citing substantial security concerns. A considerable shareholder in TikTok’s parent company is Jeff Yass, the managing director of Susquehanna International Group. Yass had recently purchased a significant portion of Digital World Acquisition Corporation, which had just merged with Trump Media & Technology Group, triggering a share price hike of around 140%.
Further details about the likely deal were outlined in a Wall Street Journal report, stating that Yiming’s share would decrease to less than 20%. A group of US companies would then take control of 80% of the platform’s stake. A new US-based entity would be formed, which would include one board member selected by the US government.
The role social media plays is undeniably significant – many businesses reach substantial sales figures on platforms like TikTok. Moreover, these platforms have become strategically important channels to report human rights abuses and initiate various forms of protest, thereby playing increasingly central roles in societal and political dialogues.
The post Ex-President Trump Nearing Agreement with TikTok appeared first on Real News Now.
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