After months of uncertainty, TikTok is 1 step distant from ensuring his endurance in the United States. According to media reports, a contract was signed with a fresh company that will handle the American activities of the popular video application. TikToka's CEO, Shou Chew (42), informed employees of this in an e-mail, which was reported, among others, by Axios and Bloomberg news service. Investors reportedly included – as previously announced – the Oracle software company, as well as American financial companies Silver Lake and MGX from Abu Dhabi.
According to Axios, they are expected to hold about 45 percent of the shares in the fresh joint venture. Another 20 percent will stay in the possession of the current owner, Chinese ByteDance group. About 1 3rd of the shares will stay in the possession of current global investors TikToka. The finalization of the transaction is expected for January 22. These events are improbable to affect TikTok's activities outside the United States – for example in Germany . TikTok has not yet referred to media reports.
TikTok saved from being banned in the United States
Since ByteDance, TikToka's parent company, is based in Beijing, the future of the application in the United States has been uncertain for months. Among another things, concerns arose that Chinese authorities could access American data. TikTok and ByteDance denied these reports. According to the bill passed last year, the American company should be separated from ByteDance until January 19, 2025 – otherwise the application would be shut down in the US.
However, president Donald Trump (79) suspended the implementation of the bill immediately after taking office in January and has since repeatedly extended the grace period . According to him, he besides obtained approval from the Chinese government to deal with TikTok in the US a fewer months ago.
It seems that investors have taken control of TikTok's U.S. branch at a bargain price. Sources acquainted with the case confirmed to the Axios portal that the valuation of the department remained at $14 billion. erstwhile U.S. vice president JD Vance (41) mentioned this amount in September, it caused surprise. Given the scale of TikTok's operations in the US, with 170 million users, this is simply a comparatively low price. The analyst Jasmine Enberg of eMarketer then informed Bloomberg that her company estimated TikTok's gross from advertising in the United States alone at about $14 billion in 2026.
Trump camp can gain even more control over the media
Democratic U.S. Senator Elizabeth Warren (76) warned after the public signing of the bill that Trump wanted to give “its billionaire dudes” even more control over what people see.
Oracle is controlled by Larry Ellison (81), billionaire and Trump supporter. His household bought a Hollywood Paramount studio a fewer months ago. After the takeover, the editorial office at the home station, CBS, underwent a violent restructuring. Recently, CBS has devoted an unusually large amount of airtime to Erica Kirk (37), a widow after the murdered right-wing activist Charlie Kirk. Paramount besides tries to take over his competitor, Warner Bros. Discovery, owner of CNN news channel. CNN, who frequently pays attention to Trump’s lies, has long regarded him as salt in the side. Oracle is already a method service supplier for TikTok in the US and, among another things, provides data centres for the platform.
Newly trained algorithm
In fresh years, there has been a lively debate around TikToka's algorithm – software that decides which videos will be displayed to users next. There were concerns in the United States that China could usage this software to manipulate the public. These concerns were another impulse to pass a bill that was to force the separation of activities in the US.
Trump opens the way to sale TikTok USA
According to the U.S. government, the fresh company will receive a copy of TikTok's existing algorithmic software. It will then be analysed and trained utilizing data from US users. any critics of Trump's deal with TikTok inform that this does not supply adequate security. US law states that neither Chinese government nor ByteDance can control the algorithm.
