A major hurdle has come in the sale of the Chinese short video mobile app Tiktok (Tiktok) in the US. The screw is stuck on the main Algorithm of the app, which has led to the interaction between Microsoft, Oracle and other American companies and the app’s parent company Bytedance. According to a report in the WallStreet Journal, whether the app’s algorithm can be made part of the deal, the conversation is stuck here. A rule implemented by the Chinese government has made the deal difficult.
The earlier part of the deal
According to the report, this algorithm of the app determines which video a user will watch without following another user or choosing their preference. Until Friday, this algorithm was being considered part of the deal. At the same time, the Chinese government has announced a ban on exports related to Ortifacial Technology, which has also brought Ticketok’s algorithm which is one of its biggest forces.
China shocks Trump’s efforts
This move by China appears to have been taken in response to President Donald Trump’s attempts to sell TickTock’s US operations by 20 September. Due to this export ban, BiteDance Limited, the Chinese owner of Ticketcock, will have to take a license to export the banned technology to a foreign company. Now the question is whether to give this algorithm to someone else, permission has to be obtained from the Chinese government and if so, will the Chinese government allow it.
The Journal said in its report that both the prospective buyer and the selling company are trying to find a solution in this regard. It is noteworthy that Microsoft-Walmart and Oracle etc. are potential purchasers of Ticketcock’s US operations. Ticketcock has not received any response to questions sent about it on Tuesday. Microsoft, Oracle and Walmart also declined to comment.