### Inside Trump’s Strategy to Preserve TikTok: A Complicated Tangle of Politics, Business, and National Security
The trajectory of TikTok in the United States has been a contentious topic for multiple years, and recent events indicate that the narrative is far from concluded. Former President Donald Trump, an outspoken opponent of the application due to its associations with China, is said to be developing a strategy to preserve TikTok while tackling national security issues. This article delves into the complex specifics of the suggested arrangement, the stakeholders involved, and the legal and political challenges that lie ahead.
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### **The Proposal: A Merger with Perplexity AI**
Central to Trump’s strategy is a possible merger between TikTok’s U.S. operations and Perplexity AI, a San Francisco-based artificial intelligence search firm valued at $9 billion. Sources indicate that Perplexity AI has presented a revised merger plan to ByteDance, TikTok’s parent company, incorporating suggestions from the Trump administration.
If given the green light, the arrangement would establish a new entity merging TikTok U.S. and Perplexity AI. The U.S. government could acquire up to 50% ownership of this new firm once it achieves an initial public offering (IPO) valuation of at least $300 billion. ByteDance would keep a minority share, but the recommendation algorithm—widely perceived as TikTok’s essential element—would remain under ByteDance’s jurisdiction.
The proposal further stipulates that most of ByteDance’s current investors would maintain their equity positions. However, ByteDance would have to relinquish “full U.S. board control,” a requirement that might not sit well with the Chinese corporation.
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### **The U.S. Government’s Role**
A particularly contentious facet of the proposal is the potential for U.S. government ownership in the new entity. While this might ostensibly create oversight to prevent TikTok from becoming a means of foreign influence, the government’s ownership would exclude voting rights or a board seat. This raises doubts about the effectiveness of such a setup in protecting national security.
The divest-or-ban legislation, formally referred to as the **Protecting Americans from Foreign Adversary Controlled Applications Act**, has been the legal foundation determining TikTok’s future. This law necessitates either a sale of TikTok’s U.S. operations or an outright ban. Trump’s initiative, which avoids complete divestiture, could test the boundaries of what constitutes a “qualified divestiture” under the law.
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### **Oracle’s Alleged Participation and Trump’s Refutation**
Recently, speculation has emerged regarding Oracle’s possible involvement in the discussions. NPR noted that Oracle could acquire a substantial interest in TikTok, effectively managing its global operations. This would indicate a more vigorous effort by the U.S. to reduce Chinese control over the app. Nevertheless, Trump has rebuffed these claims, asserting that he has “never” conferred with Oracle about such a transaction.
Trump has emphasized that any agreement must advance U.S. interests, but sources indicate that no deal is nearing completion. Other potential buyers, including Microsoft and even Elon Musk, have been suggested as contenders.
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### **Legal and Political Obstacles**
The divest-or-ban legislation poses a considerable challenge for Trump’s strategy. Legislators like Representative Raja Krishnamoorthi have maintained that total divestiture is the sole avenue for ensuring national security. The law’s parameters for “qualified divestiture” encompass two critical conditions: the app must no longer be governed by a foreign adversary, and there must be measures to prevent foreign interference in its operations.
ByteDance’s ongoing management of TikTok’s recommendation algorithm could be a contentious issue. The U.S. government has contended in court that ByteDance’s dominance over the algorithm represents a national security threat, as Chinese national security regulations might compel the company to disclose data to the Chinese authorities.
The previous effort to address these concerns, termed “Project Texas,” involved housing TikTok’s U.S. data on Oracle’s cloud servers and operating the recommendation engine domestically. However, this setup was found inadequate, prompting the enactment of the divest-or-ban law.
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### **The Consequences for TikTok Users**
As legal and political discussions persist, U.S. TikTok users are already experiencing the repercussions. The application has been eliminated from Google and Apple’s app stores, rendering it inaccessible for new downloads or updates. This situation has left millions of users in uncertainty, unable to access new functionalities or security fixes.
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### **What Lies Ahead?**
Trump has signaled that he intends to reveal his decision regarding TikTok’s future within the next 30 days. Analysts predict that China’s endorsement of any arrangement may depend on broader geopolitical factors, such as U.S. tariffs on Chinese products. Simultaneously, lawmakers and the judiciary are likely to scrutinize any agreement to ensure it adheres to the
