Chinese video-sharing app TikTok is all set to become an American company. ByteDance has decided to shift the headquarters of TikTok to the United States. ByteDance is a Chinese multinational. It owns TikTok. The development is seen as an attempt to circumvent the ban. TikTok was facing a ban threat from the Trump administration. It had cited national security concerns behind the move. It had even ordered TikTok to sell its operations to escape the ban. President Donald Trump himself promised to bring a plan in place to ban the Chinese app. TikTok was under the scanner of intelligence agencies after concerns were raised over the app compromising users’ sensitive data.
ByteDance has its headquarters based in Beijing. But TikTok currently doesn’t have a head office. Its senior executives are mostly based in Shanghai. TikTok’s new headquarters will not only look after the app’s American operations. It will house the app’s entire business. The app’s core algorithm will remain with ByteDance. The development comes days after ByteDance’s deal with American multinational Oracle. Oracle is set to acquire TikTok’s operations in the US. The two companies are yet to make the partnership official. The data of TikTok’s American users will be stored by Oracle in the country. TikTok has 100 million users alone in the US.
Oracle will be a minority shareholder in TikTok. This means the control of TikTok will remain with ByteDance. TikTok’s new office will create 20,000 new jobs in the US. Earlier, Microsoft and Walmart had jointly bid to take over TikTok’s business. But the proposal was turned down by the ByteDance. TikTok started looking for a successor President Trump issued an executive order in August. The order said that TikTok’s US business must be sold before September 20 or the app will be blocked. TikTok is a hugely popular app among the youth for its features like goofy videos, pranks, and, lip-syncing among others. The app has a strong user base of 700 million globally.