ByteDance would outsource TikTok to a new corporate entity, according to the Financial Times. While this alone would not bring a significant change to the corporate structure, as the video social network is already headquartered in California, where it enjoys “nominal” independence from the parent company, Oracle, formerly known as a potential acquirer, would also receive a minority stake. 19659002] The potential new agreement is still subject to many questions, including the fact that it is not yet clear whether the new entity could cover the TikTok sector or the global operation in the United States, Canada, Australia and New Zealand mentioned in connection with the previous acquisition. Either way, with the move, especially Oracle's entry, TikTok will be able to spin off the Chinese parent company much more sharply, and the new U.S. co-owner will ensure that U.S. user data is indeed stored in the U.S. only, according to the U.S. Foreign Investment Committee, to the guidelines of the CFIUS (Committee on Foreign Investment in the United States).
structural transformation may seem like a golden mean in an increasingly tense situation between the U.S. and China, not at all sure to allay U.S. national security concerns about the app. By the way, TikTok has already been banned in India – and YouTube has already begun to fill the gap in the region with the beta of a TikTok clone called Shorts.
As The Verge points out, the parties are currently are also working, and U.S. President Donald Trump hasn’t nodded at the deal yet. TikTok, by presidential decree, must settle its queues by November 12 at the latest, and if it fails to address security concerns by that date, it will also be banned in the U.S.
Gellert is Technology Editor at Counting News Media and contributor at other major tech publications. Her interests includes testing new gadgets and reading.