TikTok’s maneuver to stay in the US
TikTok just executed a masterful corporate move. Instead of disappearing, the platform has created a new company, controlled mainly by American capital, as confirmed by AFP.
It’s called TikTok USDS Joint Venture LLC. This ‘twin company’ will operate the social network in the United States with strict data protection and algorithm security rules. The objective is clear: comply with the law and keep the app active for its more than 200 million local users.
A way out of years of pressure
This step comes at the right time. A law passed in 2024 forced ByteDance, the Chinese parent company, to sell or restructure its operations in the US under threat of a total veto.
The new structure reduces ByteDance’s stake to less than 20%. The rest remains in the hands of firms such as Oracle, Silver Lake and the MGX fund.
The signing of this joint venture was celebrated by politicians such as Donald Trump.
The decision ends years of pressure from the US government, concerned about data handling and possible foreign influence. With this restructuring, TikTok seeks to comply with the law that requires changes to continue operating.
The new company will have strengthened controls over where data is stored, how the algorithm works and how content is moderated. The idea is that the information of American users is under local supervision.
The experts are already talking. This move could set an important precedent for other technology platforms of foreign origin that operate in strategic markets.
