ByteDance will retain significant control over TikTok’s U.S. operations under a deal signed off by President Donald Trump, even as a new joint venture is created to handle American user data and the app’s algorithm, three sources familiar with the matter told Reuters.
The arrangement leaves the China-based parent company with ownership of TikTok’s U.S. business, while ceding data, content moderation, and algorithm oversight to the new entity. ByteDance will also remain in charge of revenue-generating activities such as advertising and e-commerce, the sources said.
Trump issued an executive order on Thursday approving the sale of TikTok’s U.S. assets to a group of investors including Oracle and Silver Lake. The move was intended to meet national security demands under a 2024 law requiring ByteDance to divest or face a ban.
But the structure may trigger pushback in Congress. Representative John Moolenaar, chair of the House Select Committee on China, said Friday that the law set “firm guardrails” prohibiting any continued cooperation between ByteDance and a U.S.-based TikTok successor. “This deal should preclude operational ties,” he added.
The new TikTok U.S. is expected to be valued at about $14 billion, according to Vice President JD Vance. Sources said ByteDance is set to be the largest minority shareholder in the joint venture, which will oversee data handling, while the China-based company maintains its grip on the commercial side.
Reports in Chinese media on Friday described the split arrangement but were later taken down. The White House, ByteDance, and TikTok declined to comment.
TikTok remains a crucial tool for Trump, who often praises the platform’s reach among young voters. The app has 170 million users in the U.S., and the president has credited it with helping him secure reelection last year.
