The recent agreement between the United States and China regarding TikTok has marked a significant shift in the app’s management in the U.S. A White House official confirmed that control of TikTok’s U.S. operations will now be handed over to a consortium of investors affiliated with former President Donald Trump. This development comes just ahead of a series of deadlines previously established by the Trump administration, which had repeatedly postponed the timeline for any potential action on the app.
In a previous address to employees, TikTok CEO Shou Chew indicated that the app’s parent company, the Beijing-based ByteDance, had already signed binding agreements to establish a joint venture dedicated to the app’s operations in the United States. Under this deal, the U.S. version of TikTok will predominantly be owned by a group of investors that includes notable American tech company Oracle, California’s private equity firm Silver Lake, and the United Arab Emirates investment firm MGX. Former President Trump, while speaking to reporters last year, emphasized that the investors involved in this agreement are “well-known” and “famous” individuals in financial circles. He assured audiences that the app would be “American-operated all the way.”
According to a memo released in December, ByteDance will retain a minority stake of 19.9% in the U.S. venture. The newly formed joint venture will operate under the governance of a seven-member board of directors, with leadership provided by Adam Presser, alongside Chew, who will serve as a director. The majority of the board members will be American.
TikTok boasts a significant user base in the United States, with over 150 million active users, making Americans the largest demographic of content creators on the platform. However, the app has faced prolonged scrutiny from U.S. lawmakers across the political spectrum due to its Chinese ownership, raising national security concerns that have spurred efforts to potentially ban the app. Both Trump and President Joe Biden highlighted these risks in their discussions surrounding TikTok’s future.
The potential for a nationwide ban on TikTok seemed imminent just over a year ago with the introduction of the Protecting Americans from Foreign Adversary Controlled Applications Act. This bipartisan legislation, upheld by the Supreme Court, mandated that ByteDance divest the platform to an American firm or it would face a ban.
In the face of such threats, many users began departing for competing platforms like Instagram Reels and YouTube Shorts, fearing a loss of their audiences and livelihood. In response to legislative actions, some users even turned to the Chinese app RedNote to express their dissatisfaction with U.S. lawmakers.
Despite earlier indications that a ban could be imminent, TikTok has remained accessible to American users. Over the course of the previous administration, Trump issued multiple executive orders to delay a ban, ultimately extending the deadline four times before announcing a preliminary agreement between Washington and Beijing in September.
As the Biden administration took office, it chose to let the responsibility for enforcing any potential ban fall to the new administration. Meanwhile, key congressional leaders who had once supported the ban appeared less committed to its enforcement. Trump’s position on TikTok also shifted dramatically; his previous attempts to prohibit the app in 2020 were met with legal challenges, and by 2024, he publicly opposed a ban and even joined the platform in an effort to connect with younger voters, posting a video pledging to “save TikTok.”
This evolving narrative surrounding TikTok reflects a complex interplay of national security, business interests, and shifting political landscapes as the app continues to navigate its operations in one of its largest markets.
