 "What the new TikTok is going to look like? The possibilities explained")
Is a new TikTok coming?
There are reports that Oracle and some US investors are looking to take control of the app’s operations and that ByteDance will retain a minority stake in the app.
However, another report says Perplexity AI may merge with TikTok and that the US government will end up owning half of the popular video platform.
There are reports that Oracle and some US investors including Microsoft are looking to take control of the app’s operations in America and that ByteDance will retain a minority stake in the app. This, as Artificial Intelligence search engine startup Perplexity AI has sent a merger proposal to ByteDance which calls for the US government to own up to 50 per cent of the platform upon the execution of an IPO. Meanwhile, the resale prices for iPhones ‘with TikTok installed’ are soaring
Meanwhile, the resale prices for iPhones ‘with TikTok installed’ have soared.
The development comes after US President Donald Trump signed an executive order delaying the ban on TikTok for 75 days.
Let’s take a closer look
Oracle, US investors interested?
NPR reported that the United States is looking to bring in software firm Oracle and US investors to take over TikTok.
It quoted two people in the know as saying that ByteDance would keep a minority stake in the firm.
However, the app’s algorithm, data collection and software updates would be taken over by Oracle.
This would be probably be a smooth transition as Oracle provides the basis for Web infrastructure.
The outlet noted that though such a deal would mean that US investors would become majority owners of TikTok, negotiations are still on and that things could change.
“The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok,” a person in the know told NPR. “ByteDance wouldn’t completely go away, but it would minimise Chinese ownership.”
Officials from Oracle and the White House met on Friday regarding the deal.
A source said another meeting is slated for next week with Oracle conceivably poised to invest “tens of billions" in TikTok.
Under the terms of the deal, Oracle would be responsible for addressing national security issues. TikTok initially struck a deal with Oracle in 2022 to store US users’ information to alleviate Washington’s worries about Chinese government interference.
TikTok’s management would remain in place, to operate the short video app, according to one of the sources.
Interestingly, Oracle was pushed as the lead buyer for TikTok during Trump’s last term when he demanded that ByteDance rid itself of the app.
Oracle at the time teamed up with Microsoft and Walmart.
However, that deal later fell through with Microsoft co-founder Bill Gates famously calling it a ‘poisoned chalice.’
NPR reported that Microsoft is among the other investors being considered this time.
The deal being negotiated anticipates participation from some of ByteDance’s current US investors, according to the sources. Jeff Yass’s Susquehanna International Group, General Atlantic, Kohlberg Kravis Roberts (KKR) and Sequoia Capital are among ByteDance’s US backers.
According to CNBC, Walmart is not participating in the push to buy TikTok this time out of concerns over the app’s sky high valuation.
The White House quoted ByteDance negotiators as saying that the app could fetch a minimum of $200 billion.
Trump denies speaking to Oracle chief
Trump on Saturday he was in talks with multiple people over buying TikTok and would likely have a decision on the popular app’s future in the next 30 days.
“I have spoken to many people about TikTok and there is great interest in TikTok,” Trump told reporters on Air Force One during a flight to Florida.
Trump, however, denied having spoken to Oracle’s Larry Ellison about buying the app.
“Larry is a friend of mine,” Trump was quoted as saying by NPR. “I never spoke to Larry about TikTok. I’ve spoken to many people about TikTok. There’s great interest in TikTok,” he said.
Asked if he was putting together a deal with Oracle and other investors to save TikTok, Trump said: “No, not with Oracle. Numerous people are talking to me, very substantial people, about buying it and I will make that decision probably over the next 30 days. Congress has given 90 days. If we can save TikTok, I think it would be a good thing.”
However, according to Mashable, Trump previously said he would “like Larry to buy” TikTok.
Others vying to acquire TikTok, including the investor group led by billionaire Frank McCourt and another involving Jimmy Donaldson, better known as the YouTube star Mr Beast, are not part of the Oracle negotiation, one of the sources said.
NPR cited another source as saying that appeasing Congress is seen as a key hurdle by the White House.
Experts say it will be difficult to assuage US’ fears on China.
“The question that has always been difficult to answer is how do you prove a negative? How do you prove the absence of Chinese control of data and the algorithm?” Sarah Kreps of the Brookings Institution told NPR. “You can audit millions of lines of code, but it’s really hard to show one way or the other.”
According to Bloomberg, it remains unclear whether ByteDance will actually sell TikTok.
“I think we’re quite optimistic we’ll find a solution,” ByteDance board member and General Atlantic Chief Executive Officer Bill Ford recently told Bloomberg Television.
Perplexity AI in mix?
Meanwhile, CNBC on Sunday reported that Perplexity AI – the Artificial Intelligence search engine startup – has proposed merging with TikTok.
The firm has sent a revised proposal to TikTok parent company ByteDance.
The merger would let the US government acquire up to half the new company named “NewCo” upon the execution of a future IPO valued at $300 billion.
The merger proposes that ByteDance offer up TikTok in the US without its core recommendation algorithm.
In return, the firm would receive equity in NewCo.
Meanwhile, with TikTok unavailable to download in the United States on Google Play and in the Apple store, resale prices for iPhones ‘with TikTok installed’ have soared in America.
Some people were selling iPhones for as high as $50,000 (Rs 43 lakh) on eBay.
Fortune quoted Eden Miller as having listed an iPhone 15 with TikTok on Facebook Market at $9,000 (Rs 7.77 lakh).
Apple charges $799 (Rs 69,000) for a new iPhone 16.
“I heard there’s a high value market on them,” Miller told Fortune. “Hopefully it’s worth my asking price.”
New York native Nicholas Matthews put up his iPhone 14 Plus with TikTok for $10,000 (Rs 8.6 lakh).
However, the highest bid he got was around $4,500 (Rs 3.88 lakh).
TikTok, which is used by 170 million Americans, was taken offline temporarily for users shortly before a law that said it must be sold by ByteDance on national security grounds, or be banned, took effect on January 19.
Trump, after taking office a day later, signed an executive order seeking to delay by 75 days the enforcement of the law that was put in place after US officials warned that under ByteDance, there was a risk of Americans’ data being misused.
Free speech advocates have opposed TikTok’s ban under a law passed by the US Congress and signed by former President Joe Biden.
The company has said US officials have misstated its ties to China, arguing its content recommendation engine and user data are stored in the United States on cloud servers operated by Oracle while content moderation decisions that affect American users are also made in the US.
With inputs from agencies
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
