According to reports, Oracle, along with U.S. investors that include Microsoft, will take complete control of TikTok’s operations in the U.S., and ByteDance will retain a minority stake. The deal involves Oracle overseeing the algorithm and software update where ByteDance will collect data, hence addressing the issues over Chinese influence that call for national security concerns.
Perplexity AI, the AI-driven search engine startup, has also pitched a merger to TikTok. The deal will enable ByteDance to sell off TikTok’s U.S. operations and retain equity in the new firm. This means that the government of the U.S. would be able to buy up to 50% of the company after an IPO, valued at $300 billion.
Resale Prices for iPhones with TikTok Surge
However, the uncertainty surrounding the future of TikTok in the United States has triggered a reselling mania on iPhones that are pre-installed with the app. Resale prices for the devices have climbed to as high as $50,000 on some marketplaces after Trump had given companies until January 19 to either sell or ban the popular video-sharing app.
TikTok Sale and Ban
Former President Trump has spoken to various parties about buying TikTok, although it is unclear if ByteDance will sell the app. Trump recently signed an executive order delaying the ban on TikTok for 75 days to give more time to negotiate a deal. The proposal involves U.S. investors taking a majority stake in TikTok’s operations.
