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TikTok’s Turbulent Relationship with the US Government: A Comprehensive Update
TikTok, owned by the Chinese company ByteDance, has been at the center of controversy in the US for four years due to concerns about user data potentially being accessed by the Chinese government. As a result, US users have often found themselves caught in the middle of this tension. Earlier this year, the app experienced a temporary outage in the US that left millions of users in suspense before it was quickly restored. TikTok returned to the App Store and Google Play Store in February.
A number of investors competed to purchase the app, and after Trump extended the TikTok ban deadline for the fourth time, the battle is finally over. As of last week, TikTok officially signed a deal to divest a portion of its US entity to a group of American investors. This comes nearly three months after President Donald Trump signed an executive order that approves the sale of TikTok’s US operations to an American investor group.
Who Owns TikTok in the US?
According to a memo viewed by TechCrunch, the investor group consists of Oracle, private equity firm Silver Lake, and investment firm MGX. Collectively, they will hold 45% of the US operation, with ByteDance keeping nearly a 20% stake. Axios first reported the news, citing sources who estimate TikTok US is valued at approximately $14 billion—a figure also mentioned by Vice President JD Vance.
What Users in the US Should Know
According to reports from Bloomberg, when the deal is finalized, the TikTok app will be discontinued in the US and users will need to transition to a new platform. However, the specifics of this platform remain largely unclear, including its features and how it will differ from the original app.
How Did We Get Here?
The drama first began in August 2020, when Trump signed an executive order to ban transactions with parent company ByteDance. A month later, Trump’s administration sought to force a sale of TikTok’s US operations to a US-based company. The leading contenders included Microsoft, Oracle, and Walmart. However, a US judge temporarily blocked Trump’s executive order, allowing TikTok to continue operating while the legal battle unfolded.
