TikTok has announced through a press release the creation of a new one joint venture with which it seeks to meet the demands of the United States Government. This operation will give rise to a new subsidiary majority controlled by a group of American investors close to the president of the country.
The agreement. TikTok now operates in the United States under a new entity, TikTok USDS Joint Venture LLC. The joint venture allows Bytedance to retain 19.9% of the new company, with the rest under the control of three companies: Oracle, Silver Lake Management and MGX.
The constitution of the new subsidiary will allow TikTok to continue operating normally in the country, complying with the executive order signed by Trump on September 25, 2025.
The data. The main objective of the Joint Venture is to meet Trump’s demands. That user data remained in the United States was one of the main ones.
“The majority U.S.-owned joint venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software safeguards for U.S. users.”
The algorithm. The content recommendation algorithm will be updated in the United States, leaving it in the hands of the joint company. The Oracle cloud will be in charge of ensuring this, and it will be specifically designed to make recommendations based on data from American users.
Although the United States has gained access to the algorithm, it is not done with your property. Bytedance licenses, but does not sell its most valuable asset.
Qor what is important. The fight between TikTok and the United States was not a whim, it was a geopolitical war around one of the most important social networks for China. trump even banned the application in the United Statesafter considering it a “risk to national security” in 2024, throwing a dart at Bytedance with a Protecting Americans from Applications Controlled by Foreign Adversaries Act made to measure.
Within hours of completely shutting down, the president extended the deadline for the vetoin order to reach an agreement. Trump made it clear that, if China wanted reduce its tariff burden, the price to pay was TikTok. During 2025, the future of the social network was up in the air.
Neither winners nor losers. There are two sides to this new agreement between China and the United States. For Bytedance, TikTok is not important in the United States only because of its unique users (less than 10% of its global base): it is also important because the bulk of creators that feed their algorithm from the country.
- Although it loses participation in TikTok in the United States, it maintains a user base.
- Maintains algorithm.
- Resolves tension without giving up one of your most precious assets.
On the United States side, although it has not been able to take over the app 100%, it achieves one of its main objectives: that user data stays in the country.
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