TikTok has not been sold in the United States. Despite headlines suggesting otherwise, the short-video platform remains partially owned by ByteDance. What has changed is how TikTok operates in the US and who governs that operation.
After years of political pressure, legal challenges and the threat of an outright ban, TikTok has agreed to create a new US-focused entity designed to satisfy American lawmakers. That restructuring has sparked a broader debate about platform control, political influence and the future of global social networks.
No ad to show here.
A Us Entity Without A Full Sale
The new structure creates TikTok USDS Joint Venture LLC, a legally distinct company responsible for TikTok’s US operations. The entity is majority controlled by American and allied investors, while ByteDance retains a minority stake of just under 20 percent.
This arrangement allows TikTok to continue operating in the US without triggering the ban passed under the Biden administration. It also avoids a forced sale, which ByteDance consistently resisted in court.
TikTok describes the move as a balance between national security concerns and business continuity. Regulators see it as a compromise that places US data and governance under American oversight.
What The New Structure Actually Controls
TikTok USDS will oversee US user data storage, cybersecurity compliance, content moderation policies and commercial activities such as advertising and e-commerce. The board is majority American, and the entity operates under US law and regulatory supervision.
The algorithm will be retrained using US user data, while global discoverability for creators remains intact. This distinction is key, as it allows TikTok to claim both operational independence and continued global reach.
Why Trump Is Taking Credit
President Donald Trump has publicly praised the deal, framing it as a political victory and positioning himself as the figure who “saved” TikTok from a ban. While the legal framework was set before his return to office, his administration extended deadlines and allowed negotiations to continue.
That political framing has fuelled speculation online about influence and control. However, there is no public evidence that the White House has direct authority over TikTok’s content or algorithm under the new structure.
Why Critics Remain Unconvinced
Sceptics argue that ByteDance’s continued minority stake still creates long-term risk. Others worry that political connections among some investors could influence moderation decisions indirectly.
These concerns remain theoretical. What is clear is that TikTok now sits at the centre of a global conversation about who should control platforms that shape culture, commerce and public discourse.
Why This Matters Outside The Us
For markets like South Africa, the TikTok deal is not just an American story. It sets a precedent for how governments might regulate global platforms without banning them outright.
As social media becomes more politically and economically influential, platform governance is shifting from corporate decision making to geopolitical negotiation. TikTok is simply the clearest example of that shift so far.
The Bottom Line
TikTok has not been sold in the United States. It has been restructured into a joint venture that places US operations under American oversight while preserving global ownership links.
That distinction explains why the deal is being described as both a compromise and a warning. Platforms are no longer just apps. They are strategic infrastructure, and governments now want a seat at the table.
