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If there is momentum behind brining TikTok.US into and under the umbrella of Musk entities (however a deal could be struck) with this configuration, it would be complicit with US information security guidelines.
*** Background ***
ByteDance Ltd., based in Beijing incorporated in the Cayman Islands, parent company of TikTok:
Ownership: 60% institutional investors, 20% employees, 20% founders with Zhang Yiming controlling via dual-class shares.
TikTok Inc., California subsidiary, manages U.S. operations.
TikTok Ltd., Cayman entity, oversees global operations.
Beijing Douyin Information Services Co., Ltd. manages Douyin, the Chinese counterpart of TikTok.
Discussions for selling TikTok's U.S. operations:
ByteDance retaining 80% (not for sale)
Oracle & Walmart potentially owning 20% (stalled) this is up for potential sale / controlling interest
- Can this 80 : 20 ratio be titled toward the US based controlling company's favor ?
Important Core Point:
The U.S. business would include operations and user data but *** not the core algorithm *** -> how can the US Based Controlling entity gain access to the algorithm
Connection to China:
Douyin vs. TikTok: Separate content moderation due to legal differences.
*** Data and Algorithm***
ByteDance in China controls the algorithm; U.S. data privacy is a concern and potential risk to National Security. ( Can the US TikTok control backend and data back flows to the Douyin controlled backend? )
Operational Link: ByteDance's tech support to TikTok suggests deep integration, complicating divestiture as the algorithm isn't easily separable.
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Because of the structure of the current terms and the portions which would be under control of either a Musk entity or other US controlling entity, not sure the US should allow TikTok to operate in the US (Unless there are very strong changes to how the deal would be structured, and enable the US Controlling interests to thoroughly dissect the backend engineering of the systems that house and US data and those that operate the algorithm.
If the US controlling interest can seize control of the algorithm, and thorough control of the back end engineering, this might be a dangerous national security risk, if not thoroughly vetted.
Hopefully some deal could be struck to bring the US Tiktok under a musk entity control, because we know Elon will see to it that some of the security concerns above and others not even privy to everyone would be properly vetted.
Either way, US must tread carefully metadata on US citizens and their corresponding cross-relational connection to what would be China based military interests needs to be carefully monitored.
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