Reports Suggest That US Will Lease TikTok Algorithm from China

09/16/25
Source: Social Media Today – Latest News by Andrew Hutchinson. Read the original article

TL;DR Summary of TikTok Sell-Off Deal Framework and Its Implications

The TikTok sell-off deal framework has been extended and finalized, allowing the app to continue operating in the U.S. with a new ownership structure. TikTok America, a U.S. consortium including Oracle and others, will own 50%, while ByteDance retains a 19.9% stake. Crucially, TikTok’s algorithm will remain licensed from ByteDance, maintaining user experience but raising ongoing concerns about data security and regulatory oversight.

Optimixed’s Overview: Understanding the Latest Developments in TikTok’s U.S. Ownership and Operation

Key Points of the TikTok Sell-Off Framework

The U.S. government has confirmed a framework for the TikTok sell-off deal, which aims to address concerns around national security and user data privacy while allowing TikTok to continue functioning in the U.S. market. The deal involves:

  • Formation of “TikTok America”: A consortium of U.S. investors including Oracle, Blackrock, and Andreessen Horowitz will own 50%.
  • ByteDance’s retained stake: The Chinese parent company will keep a 19.9% ownership, preserving significant influence.
  • Algorithm licensing: The TikTok recommendation algorithm will be leased from ByteDance, enabling consistent user experience but complicating compliance with sell-off legislation.

Implications for Users and Regulation

From a user perspective, TikTok is expected to remain functionally unchanged, continuing to provide the popular infinite scroll experience. However, the deal raises important questions:

  • Security and oversight challenges: The Chinese government’s unwillingness to sell the algorithm outright means U.S. regulators may have limited insight into its operation.
  • Data privacy concerns: Past findings have revealed TikTok’s use of U.S. user data for tracking, fueling worries about potential misuse or influence operations.
  • Political considerations: The deal reflects a balancing act between protecting national interests and maintaining digital engagement platforms.

What This Means Moving Forward

While the framework represents a compromise that allows TikTok to remain widely accessible in the U.S., the full extent of the risk mitigation remains unclear due to limited transparency around the algorithm and data practices. For creators and users, this outcome ensures continuity without disruption, but ongoing vigilance by regulators and stakeholders will be necessary to address potential security and privacy challenges inherent in the deal’s structure.