US TikTok deal tipped to be announced shortly
TikTok is likely to remain available to users in the US with reports across the media that the Trump Administration is close to a deal which would allow the platform to continue operating in America.
The Information was first to reveal a potential deal yesterday which is expected see the creation of "TikTok America" and would allow investment from US companies.
Go Deeper: Under a deal, expected to be announced in the next day or so, TikTok America would be roughly 50 percent owned by new U.S. investors and licence TikTok’s algorithm from the Chinese owned ByteDance.
The potential investors in TikTok American will be closely watched. Not only have prominent investors such as Frank McCourt and Kevin O'Leary been floated but it emerged yesterday that Amazon could be an investor or co-owner.
The structure is designed to reduce ByteDance’s ownership to just under the 20% threshold required in the US law passed last year which required TikTok to sever ties with its parent company or face a ban.
Why it matters: The deal would help avoid a ban on the app which is used by more than 130 million Americans and potentially set a precedent for other Western markets to look at banning the app.
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