TikTok managed to evade a ban in the United States earlier this year, but a significant deadline is approaching that might lead to the reinstatement of that ban. A recent report indicates that President Trump’s strategy to prevent this is through the establishment of a new entity named “TikTok America.”
The proposed TikTok America would have divided ownership, but is unlikely to affect user experience
Kaya Yurieff reports for The Information:
On Wednesday, President Donald Trump is expected to reveal his strategy for a new company known as TikTok America, as part of his efforts to secure TikTok’s future in the U.S., according to a source familiar with the discussions.
The approval from the Chinese government regarding the proposed framework remains uncertain. Trump’s initiative suggests that TikTok America would be approximately 50% owned by new U.S. investors, who would also license TikTok’s algorithm from ByteDance, the source noted. Current investors in ByteDance would maintain about a one-third ownership in the new venture, while ByteDance itself would keep a 19.9% stake.
The opening of the second paragraph is particularly crucial.
While it appears that Trump is set to announce his plan imminently, it remains unclear whether ByteDance and/or the Chinese government are in agreement with this arrangement.
If both parties are in favor, then “TikTok America” may serve as a sustainable resolution to the ongoing saga surrounding TikTok in the U.S.
It is hoped that this transition will have no adverse effects on users, as the same TikTok app with the same algorithm should remain available.
To adhere to legal requirements, however, the company would need to be predominantly owned by U.S. stakeholders.
The developments over the next few days will be intriguing to follow, as efforts appear to be underway to ensure TikTok’s continued operation in the United States.
What are your thoughts on the future of TikTok? Share with us in the comments.
