The long talked about Tiktok Spinoff deal is in its conclusive phase now. The deal appears like a master class into how politics and business are intertwined. What began as a national security clash, is now turning into a profit machine for investors like Rupert Murdoch, the owner of media company News Corp, Larry Ellison, the founder and CTO of Oracle, and Michael Dell, the Founder/Chairman/CEO of Dell Technologies.
The most interesting thing to note here is that all of these corporate giants are close friends to Mr. Trump and have always been his allies in different ventures. With this spin-off deal, Trump has managed to navigate regulatory concerns, whale making roam for profit making for his friends.
The new ownership lineup shows that the plan is not just about money but about influence. While media moguls like Murdoch and his son Lachlan seem to recognize how TIktok has the capacity to shape media narrative, politics, cultures, and youth opinion globally; the techies like Larry Ellison and Michael Dell are there to take the reins of technological superiority from Chinese influence into their hands.
By combining such media muscle, technological capability, and financial fire, the deal ensures an American oversight over a platform that not only entertains but also subtly drives public opinion.
The way this deal is structured is clever. Six out of seven board seats would be controlled by Americans, while Bytedance, the original owner of TikTok, would now hold only a 20% of the ownership. It’s like China is handing over the steering wheel while still being in the passenger seat of the App.
Byetdance will benefit significantly off tiktok but won’t be calling the shots on the algorithmic front anymore. The real genius actually lies in who controls the algorithm. Because that’s what keeps the users engaged and that’s why the businesses pay billions for advertising their products or services.
This deal turns out what could have been a messy US-China standoff into something that works for almost everyone. Trump avoids an outright ban (Because that would have been a tough call if it had come to this) and delivers a big win for American investors, who “by chance”are also his friends. While, Chinese still get to keep a slice of the company instead of walking away empty handed (Which was feared initially).
Lastly, the users get to keep scrolling and the advertisers get to keep flooding their screens with their products’ pictures. Instead of opting for a tech-war, like the one that is already going on the Trade front, both sides walk away with a significant win to show for themselves.
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