The White House announced basic details of a plan that it says will "save" TikTok for more than 170 million American users while addressing national security concerns. CBS News MoneyWatch correspondent Kelly O'Grady breaks down what to know.

Washington

The White House has announced a proposal aimed at maintaining TikTok's availability for over 170 million US users while addressing ongoing national security concerns. The plan would transfer TikTok's US operations into a new American joint venture, with Oracle, an American technology company, responsible for security and retraining the app's algorithm. The joint venture would be majority-owned by American investors, including figures such as Michael Dell, the Murdochs, and Larry Ellison. 

An executive order is expected to delay any potential ban for an additional 120 days as regulatory and pricing issues are resolved. While the White House asserts that retraining the algorithm will address security concerns related to Chinese access to user data, experts note that questions remain about whether the algorithm could still be updated from outside the US, suggesting further Congressional scrutiny is likely.

White House announces details of TikTok deal

We are learning new information this morning about a potential deal to keep, rather, TikTok alive in this country. The White House announced basic deals of a plan that it says will save the social media app for over 170 million American users while addressing national security concerns. Money Watch correspondent, that's Kelly O'Grady, is here to sort it all out for us. Kelly, good morning. It's really good to see you. First, what can you tell us about the deal? And most importantly of all, what will it mean to the users here? Everybody is watching this one. I know, I mean, I'm a TikTok user, so I'm with you. So this proposal, it would take the US operations of TikTok and it would move it over into a new American joint venture. And it would create and license a copy of that all-important TikTok algorithm, and it would be controlled by this new American joint venture. Now, Oracle, that's an American technology firm. It would do the security for this, it would retrain the algorithm, and it would be owned majority by American investors. And this, the president has said, would include everyone from Michael Dell and the Murdochs to Larry Ellison, who is the owner of Oracle. And I will also disclose his son, David Ellison, is the chairman and CEO of Paramount Skydance, which is, of course, our parent company. Gail, you asked about users. So what we do not know for sure is whether you would have to re-download this app, but I did talk to a number of technology experts, and they said if the algorithm is the same, you would just have the exact same experience as you do now. So that's a good note. How soon could this happen, and how does this address the national security worries? So we're looking at an executive order by the end of the week that the president would sign that would delay the ban for another 120 days. And of course, they gotta iron out the price, the regulatory issues, all of that. The security concerns, remember, it was China having access to user data because TikTok is a Chinese-owned company. The White House says retraining the algorithm, that is gonna solve the security concerns. But I did talk to a number of experts myself, and they said it's really gonna come down to whether this algorithm can be updated outside the U.S. So I would just expect a lot of questions from Congress around what does retrain really mean? Right, all right, Kelly, thank you.

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