Background of the Negotiations

A potential TikTok deal emerged on a Monday, just days before a deadline issued by the Trump administration that required a decision on whether the app should be sold or banned. The discussions focused on how the U.S. version of TikTok would operate if the platform remained in the United States.

Licensing the Chinese Algorithm

According to statements from Wang Jingtao, the deputy director of China’s national internet regulator, the agreement would include “licensing the algorithm and other intellectual property rights.” This suggests that the core recommendation engine that drives user experience on TikTok could remain the same, even after the transaction is completed.

U.S. Oversight and Investor Control

U.S. Treasury officials, citing remarks from Treasury Secretary Scott Bessent, indicated that the revised U.S. version of TikTok would retain “Chinese characteristics” but would be governed by American investors. The intention is to preserve the app’s functionality while ensuring that ownership and oversight are aligned with U.S. interests.

Corporate Interest and Proposals

Several American entities have been linked to the prospective restructuring. Perplexity AI proposed itself as a buyer, promising to rebuild TikTok’s algorithm for a U.S. audience. Meanwhile, Oracle, which has hosted TikTok’s U.S. user data since 2022, was reported to be near an agreement that would give it a modest stake in the company and responsibility for data handling. Oracle’s involvement also includes ongoing reviews of the algorithm’s operation.

Implications for U.S. Tech Policy

The potential deal reflects a broader effort by U.S. policymakers to address concerns about foreign technology influence while avoiding a complete ban that could disrupt millions of users. By licensing the algorithm and placing American investors in control, the arrangement aims to balance national security considerations with continuity of service.

Next Steps

While the discussions are ongoing, the parties involved are working to finalize terms that satisfy both regulatory requirements and commercial interests. The outcome will shape how TikTok operates in the United States moving forward and could set a precedent for future negotiations involving foreign‑origin technology platforms.

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