TikTok's parent company keeps only one of its seven US executive seats

On June 21, Reuters reported that ByteDance will only be allowed to choose one of the seven executive seats of TikTok in the US. Meanwhile, the remaining six seats on the board of directors will be held by Americans.

President Donald Trump added that business leaders Lachlan Murdoch, Larry Ellison and Michael Dell will join as US investors. At the same time, ByteDance will only hold less than 20% of the shares in the new company, with the majority of ownership belonging to US investors.

TikTok's parent company - ByteDance only holds a 20% stake. (Photo: Reuters)

The allocation of executive positions is one of the terms of the framework agreement approved by the leaders of China and the United States last week. The document also requires all data on American users to be stored on a cloud infrastructure operated by Oracle.

"TikTok's content recommendation algorithm will be retrained from scratch and reviewed and analyzed under US supervision with domestic data, not shared with outside parties," Reuters quoted US officials as saying.

This is an important point because many US officials have warned in recent years that the algorithm could be used by China to manipulate what Americans see on social media. Reuters and other news outlets have also reported that the algorithm may have been licensed by ByteDance.

For now, users in the US can still use TikTok to interact with content from around the world . Meanwhile, ByteDance and TikTok have not commented.

This information was announced after the phone call between US President Donald Trump and Chinese President Xi Jinping ended one day.

President Trump said he and President Xi Jinping made progress on a TikTok deal over phone call and will meet face-to-face in six weeks. However, Beijing's statement did not clarify the specific progress of the agreement.

Reuters, citing a senior White House official, added that much of the agreement is consistent with reports the news agency has reported in recent days. The official revealed that Mr. Trump will extend the ban's suspension for another 120 days.

Source: https://baolangson.vn/cong-ty-me-cua-tiktok-chi-giu-duoc-mot-trong-7-ghe-dieu-hanh-tai-my-5059632.html