US President Donald Trump has announced that the deal with TikTok's parent company ByteDance is complete, marking a significant win for his administration in brokering a joint venture between the two companies.
Under the terms of the agreement, ByteDance will retain 19.9% ownership of the joint venture, which has been valued at $14 billion. The remaining majority stake will be held by Americans, with three managing investors - Silver Lake, Oracle, and MGX - each holding 15%. Other investors, including Dell Technologies CEO Michael Dell's investment firm, Dell Family Office, also have smaller stakes.
TikTok CEO Shou Chew has hailed the deal as a "great move" for the company, which will operate under the new joint venture's umbrella. The US owners of TikTok, meanwhile, will take control of the app's algorithm and data security, with ByteDance retaining ownership of the code.
Critics, however, are expressing concerns that the deal may not fully address national security worries. Some lawmakers have warned that the agreement could allow Chinese influence on the app's operations, while others have questioned whether the joint venture will be audited for security risks regularly enough to prevent potential breaches.
Trump has claimed that the deal meets requirements for "qualified divestiture," which would have prevented a TikTok ban under certain legislation. However, some lawmakers remain skeptical about the agreement and are calling for further scrutiny of its terms.
One major concern is that ByteDance will maintain control over TikTok's algorithm, potentially allowing it to influence content and continue promoting Chinese propaganda on the app. Some experts also fear that the US version of TikTok may become more polarized under new management, with potential implications for free speech and user experience.
The deal has been described as a major coup for Trump, who had previously threatened to ban TikTok from operating in the US unless ByteDance agreed to divest its ownership. However, some critics have accused him of being manipulated by China's President Xi Jinping into accepting weaker terms than those initially proposed.
As the joint venture takes shape, concerns are growing about the potential impact on users and free speech. While Trump has hailed the deal as a triumph for American business and national security, many others remain wary of its implications and are urging lawmakers to scrutinize its terms more closely.
Under the terms of the agreement, ByteDance will retain 19.9% ownership of the joint venture, which has been valued at $14 billion. The remaining majority stake will be held by Americans, with three managing investors - Silver Lake, Oracle, and MGX - each holding 15%. Other investors, including Dell Technologies CEO Michael Dell's investment firm, Dell Family Office, also have smaller stakes.
TikTok CEO Shou Chew has hailed the deal as a "great move" for the company, which will operate under the new joint venture's umbrella. The US owners of TikTok, meanwhile, will take control of the app's algorithm and data security, with ByteDance retaining ownership of the code.
Critics, however, are expressing concerns that the deal may not fully address national security worries. Some lawmakers have warned that the agreement could allow Chinese influence on the app's operations, while others have questioned whether the joint venture will be audited for security risks regularly enough to prevent potential breaches.
Trump has claimed that the deal meets requirements for "qualified divestiture," which would have prevented a TikTok ban under certain legislation. However, some lawmakers remain skeptical about the agreement and are calling for further scrutiny of its terms.
One major concern is that ByteDance will maintain control over TikTok's algorithm, potentially allowing it to influence content and continue promoting Chinese propaganda on the app. Some experts also fear that the US version of TikTok may become more polarized under new management, with potential implications for free speech and user experience.
The deal has been described as a major coup for Trump, who had previously threatened to ban TikTok from operating in the US unless ByteDance agreed to divest its ownership. However, some critics have accused him of being manipulated by China's President Xi Jinping into accepting weaker terms than those initially proposed.
As the joint venture takes shape, concerns are growing about the potential impact on users and free speech. While Trump has hailed the deal as a triumph for American business and national security, many others remain wary of its implications and are urging lawmakers to scrutinize its terms more closely.
. I mean, 19.9% ownership by ByteDance seems like a pretty big chunk to me... but what do I know? 
The US owners are gonna get control of the algorithm and data security, which is kinda reassuring, but I guess we should be worried about Chinese influence too... or am I just being paranoid? 
It's all so confusing. And what about free speech on TikTok? Is it still gonna be a safe space for all users? 
The deal is a win-win for both sides - Americans get to keep their fave app, and China gets... well, let's be real, China gets to keep its cool 
. I'm not worried about the algorithm or security stuff, I just wanna see more duet vids 
! Trump might've made a deal with Xi, but I think he actually won 
. Can't wait to see what's next for TikTok - more creators, more content, and maybe even some crazy new features 
. I mean, we're supposed to be free to express ourselves online, but what if the government (or in this case, Trump) decides to control what we see and hear? 
That's just not right.
I'm all for business deals and economic growth, but this one feels like a major compromise on our online freedoms.
. The joint venture may have its benefits, but at what cost? 
Like, how does that even work? And what about the algorithm and data security? Who's really in charge here? The US owners or ByteDance? I don't think we're getting the full story on this one... 
. If ByteDance is still in control of the code, how can we trust that they won't just flip a switch and promote pro-China propaganda on the app? And what about data security? Are we really sure this deal will keep our personal info safe from prying Chinese eyes? 
is it gonna be super biased towards Chinese propaganda or what? and btw doesn't this deal kinda contradict Trump saying he'd ban TikTok if they didn't sell out to China? 
! I mean, it's been dragging on for ages and I was getting so worried about our data being in the wrong hands 
. I'm all for American business thriving but come on, folks, let's keep an eye on this...
. The nationalists are just gonna cry about Chinese influence, but like, isn't that just how business works in today's globalized world? 
It's all about finding a balance between security and free speech. Trump might've given in to some pressure from China, but at least it means we won't have a complete TikTok ban 
. I don't think the deal is as bad as everyone's making it out to be...