Green Light for TikTok: $14 Billion Deal for the U.S.

TikTok has reached a large-scale strategic agreement worth $14 billion to avoid the risk of being banned in the United States. This move is considered one of the most significant steps taken by the platform to comply with U.S. legislation and continue its operations in the country.

Under the agreement, a separate legal and management structure will be established specifically for TikTok’s U.S. operations. The newly created entity will operate as an independent company with its own leadership and decision-making mechanisms. Control over management will primarily rest with U.S.-based and regional investors, while parent company ByteDance will retain only a limited stake, remaining outside direct control.

The main objective of this model is to meet U.S. government requirements related to national security and the protection of user data. In particular, the storage, processing, and safeguarding of data belonging to U.S. users within the country is one of the key priorities of the agreement. Additionally, TikTok’s content recommendation system — the algorithm responsible for selecting videos shown to users — will be rebuilt separately for the U.S. market and will operate solely based on local data.

It should be noted that this agreement comes amid legislation requiring TikTok to either be sold to an American owner or face a complete ban in the United States. Through this move, the company aims to reduce legal risks while maintaining its market position and retaining millions of U.S. users.

However, ByteDance’s retention of a partial stake has drawn criticism from some experts and political circles, who argue that potential indirect influence from China has not been fully eliminated. On the other hand, TikTok emphasizes that the agreement will increase transparency and create a solid foundation for its long-term presence in the U.S. market.