Information
TikTok has created a new joint venture, TikTok USDS Joint Venture LLC, with majority American ownership to safeguard its operations in the United States and avoid a potential ban linked to its Chinese parent company, ByteDance. The venture will serve over 200 million users and 7.5 million businesses, with a focus on protecting user data, apps, and algorithms through enhanced cybersecurity and privacy measures. This move follows years of political pressure and scrutiny driven by concerns that ByteDance could share sensitive US user data with China or allow its algorithm to spread propaganda and disinformation.
The deal comes after a long history of US government actions against TikTok, beginning in 2020 under former President Donald Trump and continuing through legislation passed in 2024 under President Joe Biden that threatened a ban if ByteDance did not divest. After returning to office, Trump extended the deadline several times and has now praised the agreement, claiming credit for saving the platform. Under the new structure, American and global investors will control 80.1% of the venture, while ByteDance will retain 19.9%, with major stakes held by Oracle, Silver Lake, and MGX, alongside other prominent investors.
Source: AFP, Reuters
So What
This sale is likely to reduce the risk of social interference within the United States by placing TikTok under greater domestic oversight, though it will have little impact on risks elsewhere in the world. However, it is unlikely to eliminate the threat entirely, as malicious actors can still exploit the platform to spread disinformation and manipulate public discourse. While similar measures in other regions such as the EU and UK could further strengthen global safeguards, such actions remain unlikely due to limited political and regulatory leverage.
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