Breakthrough on TikTok's Future
After months of uncertainty and the threat of a full ban on activity, the future of the highly popular TikTok app in the United States was yet decided. As reported on September 22, 2025, the high-ranking White home official, Chinese application owner, ByteDance, will decision his American operations to the recently formed joint venture. This fresh structure, dominated by U.S. capital and board, is designed to address concerns about national safety and let 170 million U.S. users to proceed utilizing the app.
Contract structure: American control and supervision
The key component of the negotiated agreement is the creation of a fresh American company to take control of TikTok's operations in the US. According to the information provided by the White House, this structure will be based on respective pillars to guarantee safety and independency from the Chinese owner:
- American property and board of directors: The fresh joint venture will mostly be American property. The owners include Oracle's technological giant and private equity fund Silver Lake. Most importantly, in the seven-man board of directors, as many as six seats will come to the Americans, which guarantees them full control of strategical decisions.
- Limitation of ByteDance shares: To meet the requirements of the Law of 2024, which ordered the divestment of TikTok's American operations, the Chinese company ByteDance's share of the fresh company will be reduced to below 20%.
- Data safety and algorithm: All U.S. user data will be stored on cloud infrastructure in the United States, managed by Oracle. A copy of the current content advice algorithm, which was 1 of the most hard points of negotiation, will be transferred to the fresh company. Oracle, as a safety partner, will carry out its full inspection and then the algorithm will be “trained” again based on U.S. users' data and operated exclusively by an American entity. It is to be continuously monitored to prevent any manipulation or malicious use.
President Trump's decision: “Qualified divestiture”
A White home authoritative announced that president Donald Trump would sign an executive regulation this week, in which he would consider that the negotiated agreement meets national safety requirements and constitutes a “qualified divestiture” within the meaning of applicable law.
Trump's administration emphasizes that its goal was not to destruct the value of the application, in contrast to the positions of the erstwhile Joe Biden administration, which “did not manage to solve the problem” and would lead to “an application lapse”. The main negotiators on the American side were representatives of Vice president J.D. Vance's office, and the White House's agreement reached presents as “another outstanding agreement negotiated on behalf of the American people”.
Compromise (?) ending a long-standing dispute
The solution seems to be a compromise that satisfies all parties. The White home can announce success in ensuring control of delicate data and algorithms, which was the main goal from a national safety perspective. TikToka users can breathe relief due to the fact that the application will work unchanged. ByteDance, though losing direct control of the key market, avoids a complete ban and retains a number financial participation in an highly profitable venture. Saga TikToka in the US is coming to an end, and her finale becomes a precedent for future regulations on abroad technology companies operating on the American market.
Nationalisation in Homeland Freedom
The current situation of Operation ByteDance in the US is simply a cleverly masked nationalization. Impossible? But it's possible. And it should be a serious informing to companies planning to invest in the United States. And here are the key features of TikTok's nationalization in the US:
- Forced nature: The action is not the consequence of ByteDance's free business decision. It was enforced by American law (Law of 2024), which put the company ahead of a choice: either to divest shares and lose control, or to completely ban activities on 1 of the world's most crucial markets. This is so under state duress.
- Acquisition of strategical control: The State (in this case the U.S.) does not take the company straight to the State Treasury, but imposes a structure that ensures that strategical control (6 out of 7 seats on the board) falls into the hands of US entities. The US government dictates who can control the company.
- Key assets under State supervision: TikTok's most valuable assets – user data and advice algorithm – are subject to strict supervision. Data is to be stored in the U.S., and the algorithm is to be “fully insecured” and monitored by an American company (Oracle), which acts as a “safety partner”. This de facto gives the U.S. government an indirect insight and control of the company's “crowns”.
- “National Security” criterion: The full operation is justified by the overriding interest of the State – national security. This is simply a typical argument utilized to nationalise or take control of strategical sectors of the economy (energy, telecommunications, natural materials).
To reject the nationalization charge, Oracle was introduced, which serves as a fig leaf here. It is besides ByteDance's share, which must not exceed 20%. In fact, there has simply been a forced acquisition of a profit-making company and an effort to take over an algorithm that is simply a key asset of the enterprise. I anticipate Byte Dance made certain to dump the American people with any old stuff wrapped up in a patch.
Is this the end of the story? Maybe. This is surely the beginning of a fresh release of freedom in the American edition. TikTok's example should be an asumpt for serious reflections for possible investors, especially those who are drawn to investing in blackmail. This can only be an introduction to further action.
Source:
Nikkei Asia (2025-09-23). TikTok’s US board will include 6 of 7 seats for Americans, White home says.
Leszek B. Glass
Email: [email protected]
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