After years of legal battles and negotiations, TikTok’s future in the United States hinges on a new deal that restructures the company into a U.S.-based joint venture, reducing ByteDance’s ownership to less than 20%. While this move aligns with a 2024 bipartisan law requiring TikTok to divest or face a ban, it raises questions about control and influence over the platform. Although the deal suggests majority U.S. ownership, real authority lies in governance, with six out of seven board seats held by Americans. Names like Oracle co-founder Larry Ellison and media moguls Rupert and Lachlan Murdoch are being considered as stakeholders, leading to concerns about concentrated power among U.S. billionaires.
The influence of ByteDance may persist through technical dependencies, even with reduced equity. The algorithm, crucial to TikTok’s success, is another area of concern. The White House claims it will be under U.S. control, possibly managed by Oracle, but the transition could disrupt data flow and personalization, affecting user experience. Ownership change does not eliminate data privacy issues, as surveillance-driven algorithms remain a concern.
Politically, the deal is significant, offering President Trump a chance to showcase a tough stance on China while aligning the platform with his business allies. With the 2026 midterms approaching, control over TikTok could impact political messaging. The deal sets a precedent for tech governance, potentially influencing other countries like Australia to seek similar arrangements. However, Beijing’s reaction remains uncertain, and the possibility of a tech cold war looms.
The agreement averts a TikTok ban but leaves unanswered questions about regulatory oversight of its recommendation system and the extent of ByteDance’s influence. Privacy concerns persist, and the deal could lead to a fragmented internet where global platforms are localized to meet political demands. The business model’s stability and independence are also in question, affecting advertisers and creators’ confidence. Ultimately, while the immediate threat is resolved, the underlying power dynamics may continue under a new corporate structure.
