TikTok has announced a $14 billion deal to create a subsidiary in the USA, controlled by American investors, to avoid the banning of the app.

TikTok has signed a $14 billion deal to establish a subsidiary in the United States, amid political pressures related to national security. The new entity will be owned by a consortium of American and international investors, including Silver Lake and Oracle, each holding 15% of the shares. ByteDance, the parent company from China, will retain a stake of nearly 20%, below the threshold considered problematic by U.S. legislation.

The U.S. Congress passed a law in April 2024 that requires TikTok to be sold to an American buyer by January 2025, citing national security risks. The new version of TikTok will operate as an independent entity, with a board of directors made up of seven members, including the CEO of TikTok and representatives of the investors. Adam Presser will become the CEO of the new entity, and control over the algorithm will be held by American investors, essential for national security.

Political reactions have been mixed, with Donald Trump welcoming the deal, but some experts believing that the negotiations were favored by China. The Chinese Ministry had a reserved reaction, emphasizing respect for the wishes of the companies. Although some American lawmakers are willing to accept the deal, skepticism remains among experts regarding the actual effects on national security.