Thread by @LindsayPGorman

Wow. In the “is-it-the-lesser-of-two-evils?” option, it appears the Bytedance-Oracle deal is a go.

The questions are in what form?

Who retains ownership over TikTok’s data and algorithms?

Is that entity incentivized to put US national security over business in China?

https://twitter.com/b_fung/status/1307430715345317888

Here are the details.

— Bytedance will retain majority stake & control over assets & algorithm
— The new TikTok Global will donate $5B to an “education fund” (Trump’s ‘cut’)
—Headquartered in Texas & hiring “at least” 25,000
—Oracle to review source code.
trib.al/urUoOP1

Beijing is yet to sign off, but given the control Bytedance retains, we’re unlikely to see significant pushback.

Also, IPO expected in about a year.

At first glance, it looks like the underlying national security concerns got traded away for an education fund and the promise to hire 25,000 Americans—despite significant objections to this deal from national security-minded lawmakers.

The up side is that if approved, it looks like a ban will be circumvented.

The downsides are that this model provides little resolution of the core data & influence concerns, smacks of political calculation, and feels like colossal rigmarole for few true gains.

Also note that this deal has no bearing on the WeChat ban, so we are still setting a precedent of banning apps without process — just only one that 19 million (primarily Chinese-)Americans use, not 100 million.

The biggest travesties of this debacle have been over process — as here where the decision. Ones down to a matter of the US president giving “his blessing.” This is not how democracies behave.

https://twitter.com/nakashimae/status/1307449759247011841

*comes down! Edit where are you