Earlier this year, the Trump administration negotiated a deal that allowed Japan’s Nippon Steel to acquire domestic producer US Steel in exchange for a unique caveat: The US government received a “golden share” of the newly combined organization that gives the White House the right to veto any big decisions that Nippon and US Steel make stateside.
This weekend, the administration exercised that right for the very first time. When word arrived at the White House that US Steel was shuttering a plant in Illinois, Commerce Secretary Howard Lutnick told CEO Steve Burritt to think again. The plan has now been reversed, the plant will stay open, and the golden share has proven its power.
Despite the obvious value of keeping one foot in a company’s door, the administration announced today that it will not keep a golden share of TikTok after the social media company is divested from current parent company ByteDance.
It’s the latest detail to come in about a forthcoming TikTok deal, and one that should allow software behemoth Oracle to breathe a sigh of relief. The company will reportedly control TikTok’s algorithm here in the US—news that pushed shares 6.31% higher today—and as a bonus, it won’t have to worry about Uncle Sam micromanaging everyone’s For You feed.—MR
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