The article also touches on Oracle's rumored involvement in the negotiations, which Trump denied. The divest-or-ban law, formally known as the Protecting Americans from Foreign Adversary Controlled Applications Act, requires TikTok to either sell its US operations or face a ban. However, ByteDance believes there's an alternative to keep TikTok in the US without a sale. The law's definition of "qualified divestiture" is crucial, as it requires the app to no longer be controlled by a foreign adversary and blocks foreign interference. The article highlights the ongoing debate over ByteDance's control of TikTok's algorithm and the potential for a new national security agreement similar to the previously proposed "Project Texas."
Key takeaways:
- Perplexity AI proposed a merger with TikTok to create a new entity, potentially allowing the US government to own up to 50% of the company after an IPO.
- ByteDance is resistant to selling TikTok, especially its recommendation algorithm, but the proposed deal would allow them to maintain a minority stake.
- Trump denied Oracle's involvement in TikTok negotiations, despite reports suggesting Oracle could monitor TikTok's operations.
- The divest-or-ban law requires TikTok's US operations to be sold or banned, and it's unclear if Trump's plan would comply with this law.