Background on TikTok and its Significance to Trump
TikTok, a popular social media app with over 170 million users in the United States, has become a focal point for President Trump’s concerns regarding national security. Recognizing its influence among younger voters, Trump has frequently discussed TikTok’s role in his re-election campaign. In response to these concerns, a new structure for TikTok’s U.S. operations has emerged.
New TikTok Structure in the U.S.
According to three sources familiar with the matter, ByteDance—the Chinese tech giant behind TikTok—will play a more significant role than initially anticipated in the new U.S. TikTok entity. This new structure aims to address national security concerns by selling ownership to U.S. and international investors while maintaining ByteDance’s involvement.
- ByteDance Retains Business Operations: ByteDance will continue to own TikTok’s U.S. business operations, including commercial activities.
- Data, Content, and Algorithm Control: ByteDance will transfer control of user data, content, and the app’s algorithm to a newly formed joint venture.
Congressional and Critic Concerns
The new ownership structure may raise questions among lawmakers and critics regarding whether the approved deal meets the requirements of a qualified divestment of all U.S. TikTok assets, as mandated by a 2024 law. This law would have forced ByteDance to divest from its U.S. operations or face a ban.
The structure is still under discussion and may change, according to the sources. The White House did not respond to requests for comment, while ByteDance and TikTok in the U.S. did not respond outside of Asian business hours.
Two-Part Structure for New U.S. TikTok
Media reports from Chinese sources on Friday outlined a two-part structure where ByteDance would retain ownership of the U.S. TikTok segment responsible for e-commerce, brand operations, and international interconnectivity. A separate joint venture would manage user data and the algorithm.
These reports from LatePost and Caixin were later removed on Friday.
Why TikTok Matters to Trump
Trump has acknowledged TikTok’s impact on his re-election, crediting the app with helping him secure victory. He has 15 million followers on his personal TikTok account, and the White House recently opened an official TikTok account. The significance of preserving TikTok in the U.S. cannot be overstated for Trump.
Key Questions and Answers
- Q: Why is TikTok important to Trump? A: TikTok has been credited by Trump with helping him win the 2020 presidential election, as it allowed him to connect with younger voters.
- Q: What is the new structure for U.S. TikTok? A: The new structure involves ByteDance retaining U.S. business operations while transferring data, content, and algorithm control to a joint venture with Oracle and Silver Lake.
- Q: Are there concerns about the new structure? A: Lawmakers and critics question whether the deal meets the requirements of a qualified divestment of U.S. TikTok assets, as mandated by a 2024 law.
- Q: What is the value of the new U.S. TikTok entity? A: The new U.S. TikTok entity is expected to be valued at around $14 billion, according to JD Vance.
