TikTok deals with the fate of the deal talk app’s algorithm


According to people familiar with the case, the negotiation of the deal for Tiktok’s US operations has hampered the question of whether the app’s core algorithm can be included as part of the deal.
The algorithms, which determine the videos given to users and are seen as Tiktok’s secret sauce, were considered part of the deal negotiations until Friday, when the Chinese government introduced new restrictions on exporting artificial-intelligence technology People who were acquainted. matter.
Now both sides are trying to figure out whether the order means the algorithm needs Chinese government approval for the transfer, and if so, whether Beijing will sign. The complexity involved has reduced the chances that a deal could be completed soon.
TikTok’s parent company, Bytdance Ltd, has said it will follow the Chinese government’s order, and is trying to get clarity from Beijing on how to proceed to the sale if new restrictions apply to its algorithms. Some people said.
For bidders, the idea of ​​buying Tiktok without an algorithm completely changes the approach to what companies are bidding for, others familiar with the situation said. He believes that a large part of TicketLock’s value lies in suggestion algorithms that keep users glued to the app.
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