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        <title><![CDATA[TikTok sale reportedly on hold over questions surrounding algorithm]]></title>
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        <lastBuildDate>Wed, 02 Sep 2020 14:09:04 +0000</lastBuildDate>
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            <media:title type="html">TikTok sale reportedly on hold over questions surrounding algorithm</media:title>
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        <content:encoded><![CDATA[<p>The hotly-anticipated sale of TikTok to an American company is reportedly on hold as parties try to figure out if the app&#8217;s secret sauce algorithm will be included in the deal.</p><p>The mega-popular video app was expected to be acquired as soon as this week, likely by a <strong>tag team of Microsoft and Walmart</strong> or by Silicon Valley cloud giant Oracle. But red tape created by the Chinese government &#8212; angered by the sale efforts resulting from President Trump&#8217;s threatened TikTok ban &#8212; has significantly muddied the waters. TikTok is owned by Beijing-based ByteDance.</p><p>The Chinese Ministry of Commerce <strong>last week added 23 items</strong> to a list of technologies that require Beijing&#8217;s approval before they can be exported. That list reportedly includes artificial intelligence technology that plays a key role in serving users personalized videos on their TikTok feeds.</p><p>Without the algorithm, acquiring TikTok would be like buying &#8220;a fancy car with a cheap engine,&#8221; a source familiar with the negotiations told <strong>the Wall Street Journal</strong>.</p><p>While one source mentioned in the report said that they were skeptical a deal would be made without the all-important algorithm as a centerpiece, another speculated that an American company would still be willing to acquire TikTok for its 100 million US users and develop a new algorithm for the app.</p><p>TikTok&#8217;s sale is now in limbo until the algorithm question is sorted out, even though ByteDance has just two months left to sell off TikTok&#8217;s US business before the app is banned in the United States.</p><p>Trump has threatened to ban the app amid concerns that Americans’ user data could be shared with Beijing, charges that TikTok has denied.</p>]]></content:encoded>
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