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Trump says deal done with China — TikTok gets a lifeline, but it’s turning into something else entirely. ByteDance will lose control over TikTok’s U.S. side. It’ll be run by Americans. Storage, servers, moderation — all moving stateside. Law that forced ByteDance to sell is pushed back to December 16, to finish the setup.
They’re talking Oracle, Silver Lake — U.S. investors who will manage most of the U.S. version. ByteDance may stay on paper, maybe with licensing rights, but its power will be cut down a lot. The feed you see, and how your data is handled — all that will be under U.S. rules. Trump said he wants a “sovereign TikTok” — one that answers to U.S. law, not China.
TikTok started as ByteDance’s global gamble. They bought Musical.ly around 2017, then rolled everything into TikTok. It blew up fast. Many Americans loved it, creators found fame. But Washington worried. Data flow, algorithms, who can influence what shows up in your feed — all became questions.
Back in 2020, Trump already tried to force a sale or ban. Courts pushed back. Biden’s administration stuck to oversight and laws instead of outright blocks. In 2024, Congress passed a law saying ByteDance has to divest or else. That’s what pushed ByteDance into this deal.
This isn’t ByteDance just tweaking structure. It means:
It’s like taking off the skin of global TikTok and sewing on an American one.
| Aspect | TikTok Before the Deal | TikTok After the Deal (Proposed) |
|---|---|---|
| Ownership | Fully owned by ByteDance (China) | Majority stake held by U.S. investors (Oracle, etc.) |
| Data Storage | Split across U.S. and global servers | All U.S. data stored domestically (Oracle infra) |
| Algorithm Control | Managed and trained by ByteDance engineers | U.S.-based oversight, potentially licensed algorithm |
| Moderation Policy | Set by ByteDance via internal rules | U.S. content governance, new moderation standards |
| Legal Jurisdiction | Subject to Chinese and some U.S. laws | Fully under U.S. legal control |
| Government Influence Risk | Concerns over CCP access to data or feed | Reduced access; subject to U.S. audit and scrutiny |
| Product Identity | Global, uniform app experience | Possible divergence: “U.S. TikTok” vs “Global TikTok” |
| Public Trust | Low among U.S. lawmakers, mixed public sentiment | Likely to improve if deal is enforced transparently |
This is no fanboy move. It’s political, technical, legal. If it works, TikTok U.S. will be a different beast. If it doesn’t, it’ll still be TikTok — just under more pressure.
2012 – ByteDance is founded
Zhang Yiming starts ByteDance in Beijing. The company first builds a news app, Toutiao, powered by a recommendation algorithm — the same core idea that will later run TikTok.
2016 – Douyin launches in China
ByteDance releases Douyin, a short-video app for the Chinese market. Fast edits, vertical video, algorithm-first. It quickly becomes a hit.
2017 – Musical.ly enters the picture
ByteDance acquires Musical.ly, a lip-sync app popular with teens in the U.S. and Europe, for about $1 billion. It gives them a user base and a bridge into the West.
2018 – TikTok goes global
Musical.ly and Douyin’s international version are merged and rebranded as TikTok. Douyin stays in China with its own content rules. TikTok begins its climb outside Asia.
2019–2020 – The explosion
TikTok becomes the most downloaded app globally. Massive adoption in the U.S. Celebrities, influencers, politicians all jump in. By mid-2020, Washington starts asking questions.
2020 – Trump targets TikTok
Citing national security risks, Trump signs an executive order demanding ByteDance divest TikTok or face a ban. Oracle and Walmart get involved in a failed deal. Legal challenges stall enforcement.
2021–2023 – Regulatory limbo
Under Biden, pressure doesn’t go away. Investigations continue. TikTok tries to ease tensions by moving some data to Oracle servers in the U.S., but it’s not enough.
2024 – The law changes
Congress passes a law requiring ByteDance to sell its U.S. TikTok assets or shut down operations. The deadline: early 2025.
2025 – The new deal
Trump, back in office, signs off on a new agreement: American investors will take over U.S. TikTok operations. The transition begins. ByteDance is sidelined.
