According to a senior White House official, the last board member, selected by the company’s present owner ByteDance Ltd., will not be included in the security committee, while the American board members will possess cybersecurity and national security credentials.
Americans Control TikTok Board
A agreement struck this week to spin out TikTok from its Chinese ownership would see Americans own and run the bulk of the company’s US activities, according to White House Press Secretary Karoline Leavitt.
Leavitt said on Saturday on Fox News that the algorithm of the video app will be controlled by the United States and that six of the seven board positions for TikTok would be held by Americans. The final agreement will be inked in the next several days, she noted.
According to a senior White House official, the last board member, selected by the company’s present owner ByteDance Ltd., will not be included on the security committee, while the American board members will possess cybersecurity and national security credentials.
TikTok Divestment Deal Finalized
Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent reached a framework deal earlier this week in Madrid to spin off ByteDance’s US TikTok businesses. That framework‘s specifics were still under wraps. President Donald Trump has given TikTok until December 16 to complete its divestment. A bipartisan bill enacted by Congress mandates that ByteDance sell up its stake in TikTok before January 2025.
“We only need to sign this contract, which should happen in the next few days,” Leavitt said. “All of those specifics have already been agreed upon.” In a phone conversation Friday, Trump and Chinese President Xi Jinping sealed the agreement.
Oracle Secures TikTok Data
According to the official, ByteDance would own less than 20% of the company under the TikTok deal, with new investors including Oracle Corp., Andreessen Horowitz, and private equity firm Silver Lake Management LLC.
According to the White House source, Oracle will serve as TikTok’s security provider and keep an eye on the app’s security in collaboration with the US government. American data will be held in the US and will not be accessible by China.
According to the official, the agreement would enable American users to keep using the well-liked software in a safe and secure manner.
“One of America’s best IT firms, Oracle, will lead the data and privacy, and America will also oversee the algorithm,” Leavitt said.
After first criticizing TikTok, Trump has changed his mind on the app and now credits it with helping him win over more young people in the last election.