TikTok managed to avoid a ban in the U.S. earlier this year, but an important deadline is approaching that could result in a reinstated ban. A recent report suggests that President Trump is working on a solution through a new entity referred to as “TikTok America.”
Proposed TikTok America would feature shared ownership, likely keeping user experience unchanged
Kaya Yurieff reports for The Information:
President Donald Trump is expected to announce his initiative for a new company called TikTok America later on Wednesday, as part of his efforts to secure TikTok’s future in the U.S., according to sources familiar with the discussions.
It remains uncertain if the Trump administration has the Chinese government’s approval for this proposed structure. Under the plan, TikTok America would be approximately 50% owned by new American investors, while licensing TikTok’s algorithm from ByteDance, according to the insider. Existing ByteDance investors would hold roughly a one-third stake in the new entity, with ByteDance retaining a 19.9% interest.
The opening of the second paragraph is particularly significant.
While it appears that Trump is poised to unveil his strategy shortly, the stance of ByteDance and/or the Chinese government regarding this proposal remains unclear.
If they agree, “TikTok America” could provide a sustainable resolution to the ongoing issues surrounding TikTok in the U.S.
Fortunately, this transition should not affect users, as it is expected that the original TikTok app with its existing algorithm will continue functioning as usual.
For legal compliance, the main ownership would shift to U.S. stakeholders.
It will be intriguing to observe how the details unfold in the upcoming days, but for the moment, steps are being taken to ensure TikTok’s continued availability in the U.S.
What do you think lies ahead for TikTok? Share your thoughts in the comments.
