TikTok US restructure takes shape as the video platform announces a majority American owned joint venture amid global scrutiny

Video sharing platform TikTok, owned by Chinese technology company ByteDance, has announced the creation of a majority American owned joint venture to operate its United States business, a decisive move aimed at easing long standing political and security concerns.

Also read: Trinity Rodman Becomes World’s Highest-Paid Female Footballer

TikTok, which says it has more than one billion users worldwide and over 170 million users in the United States, confirmed the new structure on Thursday as pressure continues to mount over data protection, content moderation and foreign ownership.

Launched in 2016 by ByteDance for the Chinese market under the name Douyin, TikTok entered the international scene in 2017 and rose rapidly after merging with the lip syncing app Musical.ly a year later.

The platform has since reshaped digital entertainment, turning ordinary users into global stars through short form video content.

Central to TikTok’s success is its powerful recommendation system, known as the “For You” page, which promotes videos based on user behaviour rather than follower counts.

Industry analysts say the algorithm’s unpredictability has allowed unknown creators to reach millions, redefining online visibility and influencing rival platforms.

However, TikTok’s meteoric rise has been accompanied by persistent suspicion.

Governments in the United States, Europe and Asia have questioned whether user data could be accessed by Chinese authorities.

India banned the app in 2020, while a European Union regulator last year fined TikTok 530 million euros for data protection failures, a decision the company is appealing.

The TikTok US restructure follows legislation passed by the US Congress in 2024, requiring ByteDance to divest control of its American operations or face a nationwide ban.

According to TikTok, ByteDance will now hold a 19.9 per cent stake, remaining below the legal threshold.

The remaining shares are held by US based private equity firm Silver Lake, technology giant Oracle, and Abu Dhabi backed AI investment fund MGX, each with 15 per cent stakes.

TikTok said the joint venture would introduce stringent safeguards for user data, algorithm security and content governance.

Beyond ownership concerns, TikTok has also faced mounting criticism over its impact on young users.

Australia banned under 16s from major social media platforms in December, placing enforcement responsibility on technology firms.

Albania imposed a one year ban in March following the death of a teenage boy after a confrontation that began online.

Despite the controversies, TikTok remains one of the world’s most influential digital platforms.

Also read: Ijebu Ode community rallies against Awujale imposition

Analysts say the success or failure of the TikTok US restructure could shape how governments regulate global technology firms in the years ahead.