Post by : Rameen Ariff

Washington, D.C.: China-based tech giant ByteDance will continue to own TikTok’s US business operations, while control over US user data, content, and the app’s recommendation algorithm will be transferred to a newly formed joint venture, according to sources familiar with the matter.

The announcement follows US President Donald Trump’s executive order requiring ByteDance to divest TikTok’s US operations to a consortium of investors, including Oracle and Silver Lake, to meet national security requirements. Despite this divestiture plan, ByteDance will remain the largest minority shareholder in the new joint venture, highlighting its continued involvement in TikTok’s US operations.

Under the proposed structure, the new US TikTok entity will be divided into two parts. The joint venture will handle backend operations, US user data, and the recommendation algorithm, while ByteDance will retain control of revenue-generating operations, including advertising, e-commerce, and brand partnerships. The new company is expected to be valued at around $14 billion, according to Vice President JD Vance.

The deal has drawn scrutiny in Congress, with John Moolenaar, chair of the House Select Committee on China, emphasizing that the arrangement must preclude operational ties between ByteDance and the new US entity. Lawmakers are closely watching to ensure compliance with a 2024 law that requires complete separation of US TikTok operations from ByteDance, particularly regarding the recommendation algorithm.

Reports in Chinese media initially detailed the two-part structure but were later removed, highlighting the sensitivity of the deal. TikTok has around 170 million US users, making it a key platform for reaching American audiences, including political campaigns. President Trump has frequently cited TikTok as an influential tool in reaching young voters, noting that his personal account has 15 million followers.

The new structure reflects an effort to balance national security concerns with maintaining TikTok’s operations and user base in the US, while still allowing ByteDance to participate in revenue-generating aspects of the platform. Officials have stated that the final structure is still under discussion and may undergo changes before approval.

#world news #Global News