TikTok Restored in U.S. After Trump Negotiates 50% U.S. Stake in Joint Venture with ByteDance

Jan. 20, 2025, 8:05 am ET

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  • TikTok restored in the U.S. following a brief ban, with President-elect Donald Trump claiming credit for its return.
  • Trump proposes a 50% U.S. ownership in a joint venture with TikTok’s parent company ByteDance.
  • Rep. Alexandria Ocasio-Cortez criticizes TikTok for thanking Trump, suggesting a potential propaganda tool for the right wing.

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Quick Brief

2-Minute Digest

Essential Context

In a dramatic turn of events, TikTok was briefly banned in the U.S. on January 19, 2025, only to be restored the next day. The ban was a result of legislation signed by President Joe Biden requiring TikTok’s parent company, ByteDance, to sell to a U.S. owner within a year or shut down.

Core Players

  • Donald Trump – U.S. President-elect
  • Alexandria Ocasio-Cortez – U.S. Representative
  • ByteDance – TikTok’s Chinese parent company
  • TikTok – Popular social media platform

Key Numbers

  • 170 million – TikTok users in the U.S.
  • 7 million – Small businesses using TikTok
  • 1 billion – TikTok’s monthly active users worldwide
  • 50% – Proposed U.S. ownership stake in a joint venture with ByteDance

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The Catalyst

The ban on TikTok was set to go into effect on January 19, 2025, but President-elect Donald Trump intervened, proposing an executive order to delay the ban. Trump suggested a joint venture where the U.S. would have a 50% ownership stake in TikTok.

“Americans deserve to see our exciting Inauguration on Monday, as well as other events and conversations,” Trump stated. “I would like the United States to have a 50% ownership position in a joint venture.”

Inside Forces

TikTok has been at the center of a long-standing debate over national security concerns due to its Chinese ownership. The company has consistently denied allegations that it shares user data with the Chinese government. Despite this, the U.S. government has been pushing for stricter control over the app.

ByteDance has explored various options to comply with U.S. regulations, including potential sales to U.S. companies, but none have materialized.

Power Dynamics

Rep. Alexandria Ocasio-Cortez criticized TikTok for thanking Trump, suggesting that the platform is becoming a propaganda tool for the right wing. “TikTok is making an explicit agreement to use their push notification system for all 170 million American users to promote Donald Trump,” she said.

Ocasio-Cortez warned about the broader implications of this move, hinting at a rise in authoritarian control over media and tech companies.

Outside Impact

The restoration of TikTok services has significant implications for its users and the broader social media landscape. The app is crucial for over 7 million small businesses and has become a key platform for political and social discourse.

The move also highlights the evolving relationship between tech companies and the U.S. government, particularly under the incoming Trump administration.

Future Forces

The future of TikTok in the U.S. remains uncertain. If the proposed joint venture goes through, it could set a precedent for how foreign-owned tech companies operate in the country.

Additionally, the ongoing debate over national security and data privacy will continue to shape the regulatory environment for social media platforms.

  • Regulatory reforms on data privacy and national security
  • Potential changes in algorithmic moderation
  • Impact on small businesses and content creators

Data Points

  • August 2020: Trump issues an executive order to force ByteDance to divest TikTok’s U.S. operations.
  • January 2025: TikTok is briefly banned in the U.S. before being restored.
  • January 20, 2025: Trump proposes a 50% U.S. ownership stake in a joint venture with ByteDance.
  • 2023: TikTok migrates its user data to U.S. servers managed by Oracle.

The recent developments around TikTok highlight the complex interplay between technology, politics, and national security in the digital age. As the landscape continues to evolve, it is crucial to monitor how these forces shape the future of social media and user data.