In a recent television appearance, White House Press Secretary Karoline Leavitt indicated that the central outlines of a potential agreement with the platform TikTok have been finalized, though official signing is still pending.

According to Leavitt, the understanding implies that the U.S. division of the short-form video app would be spun off, coming under majority ownership by local investors. Furthermore, it is established that six of the seven members of the new board of directors would be U.S. citizens, and control of the algorithm would fall under U.S. jurisdiction.

A senior administration official added that among the potential investors are high-profile firms like Oracle, which would be tasked with ensuring the app’s security, alongside Andreessen Horowitz and Silver Lake Management. The China-based parent company, ByteDance, would retain a minority stake, below 20%, in the new entity.

This move fits within the context of a deadline repeatedly extended by the previous administration, which threatened to ban the application if a transaction transferring operational control was not finalized. It has recently been stated that the agreement has the approval of the highest political levels in both countries.

By: Nestor Castillo, ForAllTechNews Director