ByteDance Expected To Keep A Big Role In New US TikTok

The role of ByteDance in the new TikTok entity turns out to be bigger than expected, (photo; dock. pexels)

JAKARTA - ByteDance, the parent company of China-based TikTok, will continue to have TikTok business operations in the United States, according to three sources familiar with the plan. Even so, control over user data, content, and algorithms will be transferred to a new joint venture formed under US government pressure.

ByteDance's role in its new TikTok entity turned out to be bigger than expected, suggesting the significant involvement of the Chinese technology company on a platform that has 170 million users in the US.

On Thursday, September 25, US President Donald Trump signed an executive order to sell TikTok operations in the US to a consortium of investors consisting of Oracle, Silver Lake, and others in an effort to meet national security demands regulated in the 2024 law. The law requires ByteDance to relinquish TikTok holdings in the US or face a total ban.

However, the details of the new ownership structure under discussion may raise questions in Congress and among critics, whether the move really qualifies as a full divestment' as mandated by law.

The chairman of the US House of Representatives' Special Committee on China Affairs, John Moolenaar, from the Republican Party, said he would carry out full supervision of this agreement. "The law has set clear limits prohibiting cooperation between ByteDance and new TikTok entities, particularly regarding recommendation algorithms," he said.

According to sources, the new US TikTok will be divided into two entities:

- Joint Venture business Will handle user data, algorithms, and backend system operations. ByteDance will be the largest minority shareholder in this entity.

- Commercial Division Still fully owned by ByteDance and will manage business aspects that generate revenue such as e-commerce, advertising, and branding.

US Vice President JD Vance said the value of the new US TikTok company is estimated at USD 14 billion.

The White House has yet to comment. ByteDance and TikTok AS have also not responded to a request for confirmation from the media on this matter.

Meanwhile, Chinese media such as LatePost and Caixin reported on the structure of these two parts, but the articles were later deleted on Friday.

Saving TikTok so that it can continue to operate in the US is an important agenda for President Trump. He often calls TikTok an effective tool to reach young voters and even claims that the platform contributed to his win in last year's election. Currently, Trump has more than 15 million followers on his personal TikTok account. Even the White House has also launched TikTok's official account last month.