TikTok’s future in the United States is now clear. The popular social network owned by the Chinese company ByteDance has reached an agreement to sell its US division to a new joint venture formed by local investors. The news was recently shared with employees through an internal memo signed by the company’s CEO, Shou Chew.
Although some details are still being finalised, the deal is expected to be officially completed before 22 January.
A new company for TikTok in the US
The subsidiary will be renamed TikTok USDS Joint Venture LLC. Around 50% of the new company will be controlled by a consortium made up of Oracle, Silver Lake and MGX.
Oracle, the US technology giant, has already been working with TikTok on managing and hosting user data in the country. Silver Lake is one of the world’s most influential investment firms, with stakes in companies such as Airbnb and Twitter. Completing the group is MGX, a fund based in the United Arab Emirates, known for its focus on projects linked to artificial intelligence and advanced technologies, and backed by the country’s sovereign wealth funds.
The remaining 50% of the company will continue to belong to investors linked to ByteDance and to the Chinese company itself, although no further details have been made public.
From the threat of a ban to a deal
This move comes after years of tension between Washington and TikTok. The US administration pushed through a law that would have forced ByteDance to divest its business in the country if it wanted to avoid a total ban on the app. The aim was to prevent a Chinese company from controlling a platform with millions of American users.
First attempts to block TikTok date back to 2021, during Donald Trump’s first term in office, although they never materialised. Later, under Joe Biden’s presidency, the measure remained on the table but was never enforced. During his second term, Trump chose to delay its implementation to allow room for negotiations, which have now resulted in this sale agreement.
Why does TikTok cause so much concern in the US?
The main source of concern for the US government is ByteDance’s relationship with the Chinese government. In Washington, officials fear that Beijing could pressure the company to access user data or influence public opinion through the platform’s algorithm.
ByteDance has always denied these accusations and has stated that it does not share user data with the Chinese authorities. So far, the United States has not presented conclusive evidence to support these fears.
However, there is also growing concern about TikTok’s potential use as a tool for disinformation. A recent example is Romania, where presidential elections were annulled after authorities suspected a foreign influence campaign carried out on the platform.
A new chapter for TikTok
With this agreement, TikTok aims to secure its continuity in one of its most important markets while also meeting US political demands. The creation of a company with predominantly local control is intended to ease national security concerns and bring stability to the app’s future in the country.
With only the final details left to be settled, everything suggests that TikTok is now entering a new phase on American soil.
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