The Tiktok Agreement did not cut off the Chinese algorithm, but it could allow many people to get a big paycheck Luck
The first thing to understand the Tiktok agreement is that it is not really an agreement – at least not in any official capacity. Trump’s executive regulation on Thursday simply delay the application of Chinese social media to be banned in the US (as required by law in spring 2024) for another 120 days, while different parties seek to complete agriculture.
So there is a lot about agrement we don’t know, and there’s a lot to change.
But if you listened carefully to the work that was said during Trump’s signature ceremony, and if you combine the official statement of the White House and various press releases on the agreement, a few things will be clear:
- The Chinese algorithm in the center of US National Security will continue to serve the content of Americans, albeit with a kind of supervision and “renication”.
- The agreement creates an opportunity for many people involved to earn money.
Whether it is a good business or a bad business probably depends on your views on everything from geopolitics to Wall Street financial practices, but if nothing else, it is an unusual agreement that is completely different from what many expected.
Made in the US?
Let’s start with the American version of Tiktok, which will be created as a result of an agreement.
According to the White House, part of the Tiktok service, which currently serves us residents, is sold from the Chinese parent company. In the new, independent “American Tiktok”, it will be created and placed under the control of a common enterprise, which is “mostly owned and dominated by the United States”.
All user data for this application will be stored in US data centers operated by Oracle (practice that actually started in 2022 in US concerns) to introduce Americans’ privacy and data security.
The joint venture will also be responsible for the supervision of the algorithm that chooses which video clips appear in users’ federals. But it looks as if news The power algorithm will continue to be an algorithm that would say that lawmakers cannot be trusted by links to China, a “foreign adversary”, the algorithm itself.
The White House said in its formal “information certificate” on the executive order that “The Divostite states the operation of algorithm, code and decision -making on the content of content under the control of a new joint venture.” The order requires “all models of recommendations, including algorithms that use US user data to be for purpose for purpose for purpose for purpose for the purpose for the purpose and monitoring of credible security partners of America.”
What explicitly does not say is that American Tiktok creates its new algorithm from scratch.
It seems that the idea is that it is an idea of the danger of an algorithm produced in China by impossible by introducing an American filter on it. As it would work in practice, it remains to be. Will the US have complete access and visibility to the algorithm, or are it basically trying to overcome the black cabinet? And could the American filter be so strong that it kills magic, resulting in a faint, pliable American tiktok that no self-the-the-to-upagers will want to use?
Loss of agreement and a lot upside down
According to the Bloomberg report, which quotes anonymous sources, JV will license an algorithm from Statnance, pay 20% of income and up to 50% profit. In a way, it is an elegant tripic solution: Fatted continues to own an algorithm and 20% its own share of the asset, which carries its brand in the US, and this acquires the underestimating financial incentive in the company – all that the friendly air appropriation of cooperation.
The ongoing license fee also American investors can get an asset with a very low payment. Vice President JD Vance said on Thursday that the agreement was awarded $ 14 billion – the league under many analysts’ estimates, which committed a value somewhere between $ 35 and $ 50 billion. The only way the price would have a sense of apartment is the license fee that sends the future, Vysoké March returned.
Axios said that Silver Lake, Oracle and MGX (Fund based in Abu Dhabi) will have a 45% share in the new joint business, while 5% cut is reserved for a new investor group that is still in the stream. This 5% group may include Rupert Murdoch and Michael Dell, the names that Trump quoted during Thursday’s signature ceremony. And it can be imagined that many other friends of Trump’s administration desire to admit to this 5% club, due to the low price of admission.
Now we will imagine that after the agreement is concluded, the new owners of American Tiktok will decide to share public sharing in IPO. With the exception of the non -exported Diseter, the American Tiktku Tiktok would almost appreciate the USD level at a level of USD (Snap has $ 14 billion for Compaison, although the Snap user base is considered smaller.
The agreement could even open the way for the Forts to the long -awaited IPO dream. The company planned plans to launch shares in Hong Kong in 2021 in the middle of the Chinese regulatory bodies on data security and have since gave the US shock absorber in the US. Without American headaches, it will have a much more attractive case in public markets – including these nice licensing income.
There are many potential winners in this agreement. Whether the American public is one of them is to be seen.
(Tagstotranslate) China