When it comes to short video apps, the first name that comes to mind is TikTok. On January 17 this year, the US Supreme Court had given its verdict upholding the ban on short video app TikTok. Then, as soon as President Donald Trump came to power, he issued an order giving temporary relief to TikTok. But now the big news is that TikTok has signed an agreement with three big investors to save its business in America. These investors include Oracle, Silver Lake and UAE investment company MGX. After this news, speculations are also being made whether there can be a break on TikTok ban in India too.
According to AP report, the company has decided to create a new Joint Venture in America named TikTok US. For this, TikTok’s parent company ByteDance and TikTok have signed the necessary agreements. This information has come to light through an internal memo. It is expected that this deal can be completed by January 22. TikTok CEO Shou Zi Chew said in a message sent to employees that the company is thankful to those who continue to work hard. He said that with this agreement, TikTok’s future in America will be secure and the company can now completely focus on providing the best experience to its users, creators and business partners.
Who will become the owner?
Half of the stake in the new TikTok US, or 50%, will be held by three big investors—Oracle, Silver Lake and MGX. Each company will have 15% stake. Of the remaining stake, 19.9% will be held by ByteDance itself, while 30.1% stake will go to ByteDance’s existing investors, which means that American ownership of TikTok will increase, and the stake of Chinese company ByteDance will reduce.
Why did America have a problem with TikTok?
The US government had been afraid for many years that TikTok’s algorithm and user data could reach China. He alleged that TikTok’s content recommendation technology could work under pressure from the Chinese government and could influence the opinions of American users.
Due to this concern, the US Parliament had ordered TikTok to find a new owner, otherwise the app would have been banned.
Where will the data be now?
According to the new agreement, the data of American users will now be kept in America only and Oracle will maintain it. That means TikTok’s American team and systems will no longer be under the control of anyone sitting outside the country.
TikTok’s algorithm will also be reworked only on American data so that there is no influence from any outside country or government. The new TikTok America will also see content moderation and policies within the US.
How did TikTok survive?
The threat of ban on TikTok remained till January 2025. In fact, earlier President Joe Biden had signed a law, in which there was an order to expel ByteDance from America. TikTok also had to be shut down for some time. Then after this, when President Donald Trump comes to power, he gives temporary relief to TikTok. After this, the deadline was extended several times and finally a safe path has been found for TikTok.
TikTok users
TikTok has more than 17 crore users in America. The special thing is that about 43% of American youth under 30 years of age also read or watch news through TikTok. This agreement is huge news for TikTok and its millions of American users. This will give the app a chance to continue, grow and work safely in the US.
Tiktok banned in India also
Talking about India, earlier in the year 2020, TikTok was banned in India due to security reasons. The Indian government had banned 59 Chinese apps, which included TikTok. The government had taken this step under Section 69A of the Information Technology Act. At that time the government said that the activities of these apps were against India’s sovereignty, integrity, security and public order. Not only TikTok was included in the list of this ban but also popular apps like Shareit, UC Browser, Kwai, Vigo Video and Clash of Kings were included.
Will there be a break on the ban in India?
This TikTok agreement reached in America will not have any direct impact in India, because India had banned TikTok in 2020 due to national security and data privacy reasons. India’s ban is based on its own decisions and evidence, so US investment alone or the new ownership structure does not guarantee the app’s return to India. But yes, if America’s security concerns seem to be resolved, it will strengthen TikTok’s global image and may increase hopes of a comeback in India in the future. But this will completely depend on the decision of the Government of India.
