TikTok may have been saved from a US ban as Vice President JD Vance is reportedly set to announce a deal to prevent the same. However, the solution is expected to include changes to the algorithm that feeds videos to nearly 140 million TikTok users in America. According to Fox News reporter Charles Gasparino, Vance is reportedly partnering with an investor group to announce the plan. Gasparino took to the social media platform X (earlier Twitter) to claim that the announcement will likely “include a grace period to put finishing touches on a deal designed” to stop the ban. Earlier, Vance was tasked with "quarterbacking a deal to save TikTok", which is said to allow TikTok's current parent company, ByteDance, to retain some equity.
JD Vance’s TikTok deal: What to expect
In his post, Gasparino wrote:
“@JDVance and investor group eying next week to announce @tiktok_us deal to prevent April 5 ban of popular app over espionage concerns; announcement likely to include a grace period to put finishing touches on deal designed to keep TikTok ban law from taking effect; GOP senators who opposed the deal are deferring to White House on matter despite continued concerns that deal could violate law; deal could allow Chinese parent @BytedanceTalk to maintain small equity piece in new co; current algorithm remains in new company and Vance working to assuage fears from equity players that Chinese built algo violates law. while some equity holders still want to build a new algo; @OracleNYSE to play major role in storing data; US equity holders in current company will maintain controlling stake.”However, Gasparino’s tweet didn’t specify what changes will be made to the algorithm since the deal permits its current version to transfer to the new company. However, some equity holders are advocating for the development of a new algorithm.
Meanwhile, Oracle is expected to handle most of the data storage under the agreement, and existing US equity holders are expected to retain a controlling stake in the new company.