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This Deal Smells Like the Last Four

Been through this dance before. January deadline, then April, then June, now September 17th. Each time they announce a "framework" - same word they used for the Oracle deal that went nowhere.

Bessent says TikTok gets "US-controlled ownership" before Wednesday. Cool. Last time they promised that we got 3 years of court battles and nothing happened.

The Government Stake Option Is Real This Time

Here's what's different: Trump already took a 10% equity stake in Intel when they needed bailout money. So direct government ownership isn't some theoretical bullshit anymore - it's precedent.

The Intel deal shows what "government stake" means. Treasury gets board seats, veto power over tech transfers, and access to sensitive business info. It's nationalization with extra steps.

If they do this with TikTok, your dance videos get government oversight. Every algorithm update needs approval from the same people who can't figure out healthcare.gov.

The Algorithm Problem Everyone Ignores

ByteDance won't sell the recommendation algorithm. They've been clear about this forever but everyone acts like they'll cave eventually.

Without that algorithm, TikTok becomes Instagram Reels with shittier moderation. The magic is in those neural networks deciding what you see next. ByteDance spent years training models on user behavior across the globe.

Can't just copy-paste the code either. Models need constant retraining with fresh engagement data, trending patterns, seasonal stuff. I've seen the engagement drop by 40% when recommendation models go stale for even a week. Separate algorithm from data pipeline and the whole thing breaks.

This "Deal" Probably Doesn't Exist Yet

Trade rep Greer says they have an agreement "subject to leader approval." Yeah, that means they scribbled some shit on a napkin and crossed their fingers that Trump and Xi don't start tweeting at each other.

"Framework" agreements are what you announce when you need to buy time. Real deals have terms, timelines, and signed papers.

The September 17th deadline isn't arbitrary - it's when app stores are supposed to remove TikTok. Apple and Google need technical specifications for compliance, not political promises.

Why This Keeps Failing

Every TikTok deal dies on the same technical reality: you can't split the algorithm from the infrastructure. ByteDance's recommendation system runs on their Chinese servers, processes data from their global operations, and integrates with their other products.

Building a US-only version means starting over. New data centers, training pipelines, moderation systems. Looking at 2+ years of dev work and massive infrastructure costs.

Meanwhile YouTube Shorts and Instagram Reels are eating market share while this drags on.

What Actually Happens on Wednesday

If no deal materializes by September 17th, TikTok disappears from US app stores. Existing users can keep the app but no updates, no new downloads, no payment processing.

App will slowly break as APIs change and certificates expire. First the video uploads start failing, then comments, then the feed stops updating. Give it 6 months and most users can't use it anymore.

But they'll probably announce another extension Tuesday night. That's been the pattern. Look tough on China without actually banning something 170 million Americans use daily.

Guess we'll see Wednesday if this time is different.

What This TikTok Deal Actually Costs Everyone

This isn't about national security anymore - it's about money and who controls the most addictive app ever built. And the answer is: whoever pays the biggest bribe to politicians.

Jeff Yass Basically Bought Trump's Support

Jeff Yass has around $15 billion tied up in ByteDance through Susquehanna. Met with Trump in March 2024. Three weeks later Trump flipped completely on TikTok.

That's not coincidence, that's expensive lobbying. Yass was looking at massive losses if TikTok got banned. So he went shopping for friendly politicians.

The crazy part? It worked. Trump went from "TikTok is Chinese spyware" to "TikTok is beloved by young Americans" faster than a teenager changing their outfit.

China's About to Learn the Same Lesson

Here's what China doesn't understand: if the US can force TikTok to change ownership, China can do the same thing to American companies operating over there.

Tesla has a massive Shanghai factory that builds half their global production. Apple assembles iPhones in Chinese facilities and stores user data on Chinese servers. Microsoft's Azure cloud runs data centers in Beijing and Shanghai.

All of those become targets now. China just learned they can demand equity stakes, board seats, and technology transfers as the price of market access. Thanks for the playbook, Washington.

The Algorithm Problem Is Actually Unsolvable

Everyone keeps talking about separating TikTok from its algorithm like it's some technical challenge we can engineer around. It's not. The algorithm IS TikTok.

Recommendation systems aren't standalone software you can copy and paste. They're integrated into every part of the platform - content moderation, ad targeting, creator monetization, user engagement metrics.

You can't just fork the codebase and rebuild the training data. TikTok's algorithm has been learning from billions of users for six years. It knows which videos make people laugh, which ones make them cry, which ones make them buy shit.

Starting over means building Instagram Reels with better marketing. Nobody's paying tens of billions for that.

Small Creators Are Completely Fucked

Lost in all this geopolitical theater are the millions of people who built businesses on TikTok's platform. Their revenue comes from engagement algorithms they can't replicate anywhere else.

Small creators are making serious money selling niche stuff through TikTok videos. Vintage clothing, weird art, 90s memorabilia - audiences that don't exist on Instagram or YouTube because only TikTok's algorithm finds the right buyers.

If TikTok's algorithm changes or the user base migrates, they're back to working retail. Multiply that by a few million creators and you're talking about real economic damage.

Every Other Country Is Taking Notes

India already banned TikTok and forced companies to store data locally. The EU is debating similar requirements. Brazil wants government oversight of recommendation algorithms.

The TikTok precedent tells every government they can extort tech companies by threatening market access. That's going to get expensive fast.

Meta will end up running separate versions of Facebook for different countries. Google will need country-specific search algorithms. Every major platform will fragment into regional versions optimized for local political requirements.

What Actually Happens Next

Most likely scenario: TikTok pays some fines, agrees to token compliance measures, and keeps operating basically unchanged. The US gets to claim victory over China, China gets to keep their biggest cultural export, and politicians on both sides collect their donations.

The real losers are users and creators who spent two years in regulatory limbo while their livelihoods hung in the balance. But nobody in Washington gives a shit about that.

This whole saga proves tech policy gets made by whoever pays the most in campaign contributions. National security is just the excuse they use to justify whatever their donors want.

I'm setting a reminder to check back in six months and see if anything actually changed besides the press releases.

TikTok Deal: What the Hell Is Actually Happening

Q

What did they actually announce?

A

Scott Bessent says they have a "framework for a TikTok deal" that puts TikTok under "US-controlled ownership." That could mean anything. Trump and Xi are supposed to finalize details on Friday.

Q

Is this deadline real this time?

A

The deadline is Wednesday, September 17. They're saying any extension would be brief, not another months-long delay. We've heard this before though.

Q

What does "US-controlled ownership" mean?

A

Nobody knows. Could be private buyers, could be government ownership like the Intel deal. They're being deliberately vague because the details probably don't exist yet.

Q

Why did Trump flip on TikTok?

A

Political money. Trump met with Jeff Yass in March 2024

  • a billionaire with huge ByteDance investments. Suddenly Trump went from "ban TikTok" to "save TikTok." Shocking.
Q

How many times have they extended this deadline?

A

Four times. January became April, April became June, June became September. Each time they promised it was the last extension.

Q

What about the algorithm?

A

This is the big question. ByteDance won't sell the algorithm that makes TikTok addictive. Without it, you're just buying an empty shell. The announcement doesn't say how they solved this.

Q

Who's buying TikTok?

A

No confirmed buyers yet. Lots of rich people want it, but TikTok without the algorithm is just another video app. The tech is what matters.

Q

How much is it worth?

A

Depends who's counting and when you ask. Valuations are all over the place

  • $50-100+ billion. Without the algorithm, way less.
Q

Will my TikTok still work?

A

If the deal goes through, yes. But the app might change depending on who owns it and what tech they can actually use.

Q

Does this fuck up US-China relations?

A

This IS the economic warfare. If it works, maybe other tech disputes get resolved. If it fails, expect every tech company to get caught in the crossfire.

Q

Will other countries demand this for US companies?

A

Probably. If the US can force China to sell TikTok, why can't the EU force Google to have local ownership? Pandora's box is open.

Q

When do we find out what actually happens?

A

Trump and Xi talk on Friday. But we've been promised "final answers" before. I'll believe it when TikTok either disappears or the ban threat goes away permanently.

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