**The TikTok Tangle: Trump’s Rebuffed Deal Rearing Its Head Again**
In a twist of fate that has many folks scratching their heads, it seems that the TikTok deal championed by former President Donald Trump might just be a rehash of a proposition previously rejected by the Biden administration. After a long, drawn-out negotiation saga, TikTok’s Chinese parent company, ByteDance, appears to be playing its cards right, potentially winning over a White House that has been known to snub their offers. The outcome appears to allow ByteDance to hang onto a significant chunk of TikTok’s operations right here in the good ol’ US of A.
Under this new arrangement, ByteDance looks set to maintain control over many of TikTok’s crucial business components in the U.S., including the advertising and e-commerce sectors. This is especially eyebrow-raising considering Trump had once ordered that TikTok’s U.S. operations would be run by a new joint venture based stateside. However, in a move that could make anyone furrow their brow in disbelief, ByteDance is on track to pocket about half of TikTok’s U.S. revenue via revenue-sharing agreements with this freshly minted TikTok entity.
What’s more, Trump’s executive order clearly stated that this new TikTok would have “no operational relationship” with ByteDance. Yet reports have surfaced that hint at a different story, suggesting that ByteDance will continue to have its fingers in the advertising and e-commerce pie, as well as cashing in on TikTok’s all-important recommendation algorithm. It almost feels like a game of hide and seek where ByteDance is still hiding behind the curtain, even as the new U.S. face of TikTok takes center stage.
Looking back at the draft agreement negotiated under the Biden administration in 2022, it seems like deja vu for those who followed the saga closely. In that proposal, like the current one, ByteDance would have kept its hands on several key functions at the U.S. TikTok entity, including advertising and budgeting decisions. Ultimately, Biden’s team found the pitch unpalatable and pushed for a complete divorce from ByteDance. After all, the goal here was to keep American data and operations secure from any form of outside influence, particularly that of the Chinese government.
A striking similarity arises when comparing the goals of Biden’s “Project Texas” plan with Trump’s current proposal. With Congress demanding a total severance from ByteDance, the rebranding of TikTok’s operations appears to be little more than a clever marketing ploy to placate Congress and the American people. It’s almost as if ByteDance had its lobbyists in overdrive, trying to dress up a wolf in sheep’s clothing to pass it off as a legitimate sale rather than a mere spin-off of its functions.
What raises the alarm bells even further is ByteDance maintaining control over TikTok’s revenue-generating wheelhouse, particularly in U.S. advertising. Recent reports sparked concern about the possibility of the Chinese Communist Party (CCP) using TikTok as a tool for propaganda, especially considering past instances where Chinese state media exploited the platform to spread their messages in Europe. Should ByteDance retain its advertising dominance in the U.S., there could be risks that American TikTok users may be inundated with similar content, casting a shadow over the idea of a safe and secure TikTok experience.
In this labyrinth of politics and deals, one thing is clear: the TikTok drama is far from over. As many people wonder about the actual implications of this deal, it seems that the fine print will tell a tale all its own. For those eager to unpack these developments, Forbes is covering this saga closely. It remains to be seen whether this new iteration of a TikTok deal will pass muster under the watchful eyes of Congress and the American public. Tune in, folks; this show has plenty of episodes left to air!
