It turns out that TikTok will not be banned in the US after all.

      TikTok’s exit strategy from the US has been officially scrapped.

      TikTok has reached a significant milestone in its ongoing struggle to maintain a presence in the United States. The company recently announced a substantial joint venture that could potentially eliminate the risk of a nationwide ban due to its Chinese ownership.

      TikTok’s Plan for US Continuation Takes Form

      An internal memo obtained by AFP reveals that TikTok CEO Shou Chew informed his team that a deal has been made with parent company ByteDance to establish a new US-based entity. This joint venture has the backing of several prominent investors, including Oracle, Silver Lake, and Abu Dhabi-based MGX, each of which will hold a 15 percent share. Current ByteDance investors will command just over 30 percent, leaving ByteDance with slightly under 20 percent, which aligns with the limits set by US law for Chinese firms.

      This arrangement is designed to comply with a law enacted in 2024 that demanded ByteDance either sell its US operations or face a ban. This ultimatum arose from concerns in Washington that China could exploit the app for espionage or manipulate public sentiment through its algorithm.

      With this new agreement, the US joint venture will assume complete control over vital aspects such as data protection, algorithm security, content moderation, and ensuring the software's safety for American users. Chew emphasized that this new entity will have exclusive authority to safeguard US user data. Oracle, led by Larry Ellison, who is known to have connections with Donald Trump, is expected to manage the technological infrastructure and oversee operations closely.

      Positive news emerges! TikTok is here to stay.

      For users, this indicates that the app is likely to remain available. For content creators and businesses, it finally alleviates the uncertainty that has overshadowed their prospects for years, threatening their revenue and marketing strategies.

      Politically, it represents a classic compromise. It grants the US the desired control without compelling ByteDance to undertake a complete sale, which Beijing would never have approved. Trump has delayed the ban deadline multiple times, with the most recent extension to January; this deal resembles the framework hinted at by the White House in September.

      However, it isn't finalized yet. Chew acknowledged that additional steps must be taken before the target closing date of January 22, and approval from the Chinese government is still pending. Analysts also caution that scrutiny is unlikely to dissipate. US regulators may impose new regulations on TikTok, and questions about the operation of its algorithm will persist.

      Nevertheless, experts view this as a significant victory for ByteDance. Retaining a presence in the US protects them from a financial catastrophe and allows them to refocus on AI and potentially an IPO in the future. For now, TikTok's outlook in the US appears more secure than it has in quite some time, despite the ongoing debates surrounding it.