Trump said Xi said they will approve the deal. That said there is no official word from Chinese government as of yet, but them not denying it outright makes me think they will approve the deal.
China has cleared regulatory hurdles to allow a deal on their terms. Deal includes leasing the algorithm at a 20% revenue royalty. Which is $2-$3B payment/year to ByteDance. Previous valuations of US operations were $40B at high end which means profit under $2B/year, and so the buyers are buying a money losing business that they have to invest to grow sales and lose even more from the royalty payments. ByteDance shareholders (many American) love this deal because they get $14B (or 45% of it) + all of the profits they were ever going to get in the future.
The criticism that this is a sweetheart deal for MAGA supporters is false. This is just Zionazi media consolidation to ensure Zionazi/MAGA censorship. Like all Zionazi media, operational profit is not the purpose.
I think China and ByteDance are silent to not aggravate the situation, and I see no incentive to sell. Most likely TicToc will quietly cooperate with the American government more, or the service will be banned
Cooperate on what? It was never about national security. The US just wants to control all social media platforms. From China’s perspective, it has outlived its usefulness as a data collection platform and could be better leveraged as an asset in trade negotiations.
My guess is that approval to sell will be followed by some tarrifs relief or some other trade deal.
If you look at the Chinese press and social media no sale is expected.
Trump has a history of announcing sales without agreement. He did it before he was president.
Also at this point he had lied and broken promises so much the Chinese cannot rely on agreements, they can only try to not engage in non constructive ways.
Trump said Xi said they will approve the deal. That said there is no official word from Chinese government as of yet, but them not denying it outright makes me think they will approve the deal.
China has cleared regulatory hurdles to allow a deal on their terms. Deal includes leasing the algorithm at a 20% revenue royalty. Which is $2-$3B payment/year to ByteDance. Previous valuations of US operations were $40B at high end which means profit under $2B/year, and so the buyers are buying a money losing business that they have to invest to grow sales and lose even more from the royalty payments. ByteDance shareholders (many American) love this deal because they get $14B (or 45% of it) + all of the profits they were ever going to get in the future.
The criticism that this is a sweetheart deal for MAGA supporters is false. This is just Zionazi media consolidation to ensure Zionazi/MAGA censorship. Like all Zionazi media, operational profit is not the purpose.
I think China and ByteDance are silent to not aggravate the situation, and I see no incentive to sell. Most likely TicToc will quietly cooperate with the American government more, or the service will be banned
Cooperate on what? It was never about national security. The US just wants to control all social media platforms. From China’s perspective, it has outlived its usefulness as a data collection platform and could be better leveraged as an asset in trade negotiations.
My guess is that approval to sell will be followed by some tarrifs relief or some other trade deal.
If you look at the Chinese press and social media no sale is expected.
Trump has a history of announcing sales without agreement. He did it before he was president.
Also at this point he had lied and broken promises so much the Chinese cannot rely on agreements, they can only try to not engage in non constructive ways.
People should not listen to Trump
I did and see the opposite. Most expect it to go through but see it as a win since they retained ownership of algorithm and the access to US market.
While true, it’s usually self-serving ego boost. This being a fake deal would be a huge embarrassment instead.