TikTok’s China-based owner, ByteDance, is expected to maintain ownership of its U.S. business operations while handing control of user data, content, and algorithms to a newly formed joint venture, according to sources familiar with the matter.
The development signals a larger-than-expected role for ByteDance in the U.S. TikTok setup. Last Thursday, U.S. President Donald Trump signed an executive order outlining the sale of TikTok’s American operations to a consortium including Oracle, Silver Lake, and others to address national security concerns. However, details about the ownership structure have prompted questions in Congress over whether the deal represents a full divestiture of TikTok’s U.S. assets, as required under a 2024 law.
John Moolenaar, chair of the House Select Committee on China, said on Friday that he would conduct full oversight of the deal. “The law also set firm guardrails that prohibit cooperation between ByteDance and any prospective TikTok successor on the all-important recommendation algorithm,” he said.
Sources explained that the new U.S. TikTok would be split into two entities. The joint venture announced by Trump will manage backend operations, including U.S. user data and the recommendation algorithm. ByteDance is expected to remain the single largest minority shareholder in this joint venture.
Meanwhile, a separate division, fully owned by ByteDance, will control revenue-generating operations such as e-commerce and advertising. Reports in Chinese media suggested a similar two-part structure, although the articles were later removed.
The new U.S. company is valued at approximately $14 billion, according to Vice President JD Vance.
Saving TikTok in the United States remains a high priority for Trump, who frequently cites the platform’s influence in reaching young voters. TikTok has around 170 million U.S. users, and Trump’s personal account has 15 million followers. The White House also recently launched its official TikTok account.
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