Trump claims agreement on TikTok deal with Chinese counterpart
In a significant development, TikTok, the popular video-sharing app, has found a resolution in its long-standing battle with the US government over its Chinese ownership. The takeover of TikTok's US subsidiary is set to be led by an investor group, with Oracle's Larry Ellison at the helm, alongside Andreessen Horowitz, Silver Lake, and a previous partner, Walmart. The new US-based entity, TikTok Global, will boast a majority US ownership, aiming to reduce Chinese influence.
The US government had previously threatened to ban TikTok due to concerns over its Chinese roots. These concerns escalated last year, leading to a law that mandated TikTok to be sold by its parent company, Bytedance, by January 19, 2025, or face being taken offline in the US. However, former President Donald Trump granted an additional deadline, which he later extended several times.
Bytedance, headquartered in Beijing, has been subject to many Chinese regulations. TikTok, owned by Bytedance, reportedly had over 170 million users in the US. The current negotiations could see the app continue its operation in the US, albeit under new management.
The takeover could potentially generate several billion dollars for the US government, as part of the transaction. This development comes at a time when another online platform, Twitter, has moved politically closer to right-wing voices, following its takeover by tech billionaire Elon Musk, a former advisor to Trump.
Meanwhile, the US isn't the only market experiencing changes. A world market leader has closed its German plant without reaching a social plan agreement, while a major German automotive supplier is implementing a transformation program with massive job cuts and site optimizations. Elsewhere, a DIY chain has announced the closure of 50 stores, with a short-term clearance sale commencing.
In international politics, a Putin ally has warned of an escalation in West sanctions against Russia, threatening retaliation "until the end of the century." However, there is no specific information provided about any Russian assets in Europe in the given context.
Facebook's parent company, Meta, which includes Instagram, has also moved politically closer to the Republicans. As these changes unfold, the global business landscape continues to evolve, with technological, political, and economic factors shaping the future of various industries.
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