Business & Economics
TikTok Cedes 80.1 % U.S. Stake in Last-Hour USDS Joint Venture Deal
Hours before a Jan 23 2026 ban deadline, ByteDance transferred control of TikTok’s U.S. business to a new LLC that is 80.1 % owned by American investors, keeping the app live for 200 million U.S. users.
Focusing Facts
- Oracle, Silver Lake and MGX each hold 15 % while ByteDance retains 19.9 %, making it the largest single but not majority shareholder.
- Adam Presser was named CEO of the seven-member, majority-American board that also seats TikTok global CEO Shou Chew.
- The restructuring fulfills an executive order signed 25 Sept 2025 after a 2024 divest-or-ban law, capping four extensions issued by President Trump.
Context
Great-power pressure on foreign tech firms has precedent: in 1918 the U.S. seized German-owned telegraph cables, and in 2012 CFIUS forced China’s Ralls Corp. to divest Oregon wind farms—both framed as security necessities amid geopolitical rivalry. The TikTok carve-out is the first time Washington compelled a global algorithmic platform to localize code, data and governance, signaling a deepening phase of digital mercantilism and data-sovereignty politics already visible in India’s 2020 app bans and the EU’s 2023 DSA. On a 100-year arc, the episode hints at a splintering internet where nation-states treat code like critical infrastructure: interoperable yet segmented behind political firewalls. Whether this deal becomes a blueprint or a cautionary tale will shape how future transnational networks—AI models, quantum clouds—navigate between economic integration and national security anxieties.
Perspectives
Right-leaning U.S. media
e.g., Fox Business, NTD, Arutz Sheva, ANI — Frame the joint-venture as a Trump-engineered victory that safeguards national security and keeps the app alive under the control of “Great American Patriots.” Heavy emphasis on Donald Trump’s personal role and patriotic ownership downplays ByteDance’s continuing 19.9 % stake and glosses over bipartisan legislation that actually forced the divestment.
Chinese state-owned media
Global Times — Portrays the deal as proof that pragmatic cooperation and mutual respect can resolve disputes while allowing ByteDance to remain the largest single shareholder. Minimises U.S. security worries and highlights China’s principled stance against “politicisation,” implicitly suggesting the compromise is a win for Chinese interests.
International business press and wire services
The Straits Times, UPI, Mid-Day — Present the transaction mainly as an important commercial step that ends years of uncertainty and lets U.S. users keep enjoying the platform. Focus on operational details and user numbers may understate the geopolitical tug-of-war and political credit-claiming that shaped the outcome.